For contractors
Getting bonded, explained from the other side of the desk
You need a bonded job to build a record of bonded work. But the first question you hear is, “What bonded jobs have you finished?” If that sounds like being asked to bring experience you have not been allowed to get, you are not imagining the problem. There are ways to make the first conversation more useful.
This is a plain explanation of how sureties think, written by someone who ran finance inside a surety agency, with no bond to sell you. EvenPenny makes software for insurance agencies. We don't issue bonds. If you want to be pointed to an agency that can, use the email link at the bottom.
Find the question you are working through
Why a surety won't bond your first job, and how to get around it
Why new contractors struggle to get a first bond, how SBA guarantees work, and the practical alternatives to a long bonded-job history.
Read the guideWhat a surety underwriter actually looks at
Understand contractor bonding requirements: character, capacity, capital, CPA statements, working capital and the work-in-progress schedule.
Read the guideHow to increase your bonding capacity
How retained earnings, clearer financials, reliable job reporting and a stronger completion record can support a contractor's bonding capacity.
Read the guideBid bond vs. performance bond vs. payment bond
What bid, performance and payment bonds cover, when contractors need them, and how the three fit together from bidding through award.
Read the guideWhat a surety bond actually costs
Understand contract-bond premium, published rate ranges, sliding scales, SBA fees and the other costs to discuss before you bid.
Read the guideWhat to have ready before you ask for a bond
What to gather before requesting a contractor bond: company records, financials, job documents and questions for your first agency meeting.
Read the guideMistakes that kill a bond request
Common reasons contractor bond requests stall or get declined, what worries an underwriter, and how to prepare a stronger resubmission.
Read the guideWant to be pointed to an agent? Email getbonded@evenpenny.com.