Get Approved Today: (877) 927-0328
Get Approved Today: (877) 927-0328
Our exceptional turn-around time is the best in the industry!
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I like working with people who know my name and know my type of business. I like working with people who care... and being able to talk with a construction surety expert, is crucial when securing bonds.
San Leandro, California
There are two main criteria. For projects under $750K, a good personal credit score of the owner is a determining factor. For a company that performs larger projects, sufficient working capital is the primary measure. That said, there are many other determining factors.
Typically, underwriters do not like to approve a bond for a project that is more than twice the largest project the construction company has performed in the past. Slow company growth has proven to keep construction companies financially stable.
It varies. For projects under $750K, the turn-around time can be as little as one day. For projects greater than $750K, the turn-around time can be a week or more, much like getting a home mortgage.
For projects less than $750K, a simple one-page application is required. For projects over $750K and up to $1MM additional financial information is needed. For projects $1MM+, a full submission is usually required, including financial statements (company and personal), tax returns, a work-in-progress report, and much more.
Generally, a claim against a bid bond (usually 10% of the bid amount) can be placed against a bond if a company is the low bidder but chooses not to enter into a contract with the owner. This is rare, because the company would likely never get a bond again. A claim against a performance and payment bond can be placed if the project is not built to completion (usually placed by the project owner) or the company does not pay all who performed work on the project (usually placed by employees or subcontractors).
Run a sound construction company that adopts all the practices and procedures typically used by the most successful construction companies. Adopting the Construction Enterprise Risk Management (ERM) process for running a construction company serves as a good guide. An expert in this field by the name David F. Druml is a former contractor and former teacher at UC Berkeley who originated the process.
