CONTRACTORS AND SURETY BONDS/BONDING/CONTRACT BONDS/BID BONDS/PAYMENT AND PERFORMANCE BONDS/NEILL BONDING & INSURANCE

Bonding companies require timely financial information and frequent meetings. Contractors should work to foster a strong bond with a surety. The surety and the agent want clients to be successful–not only to prevent losses, but also to promote a healthy and profitable client.

For sureties, success relates to the        Three Cs:

1. Character: The surety wants a sense that the company has the highest integrity and that the owner is honorable.

2. Capacity: Capacity is the expertise, manpower and experience to handle the project. Generally a surety will consider a project no larger than twice the size of the largest project completed by the contractor.

3. Capital: Capital is the financial strength to handle the total backlog of the company, whether the work is bonded or not.*

*Information provided by the Surety Information Office

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