bond capacity

Surety Underwriting: How Your Bond Line Gets Approved and Why Contractors Lose Bonding Capacity They Didn't Know They Had

Surety bond capacity is based on the underwriter's view of the contractor's character, capacity, and capital — the three C's of surety. Audited financials, work-in-progress schedules, and banking relationships drive the single-job and aggregate limits the surety will approve. Contractors who don't understand what the underwriter is evaluating often lose bond capacity at the worst possible time — during downturns, after claims, or after a financial stumble that could have been managed differently.