How To Get A Bond

For many contractors, the first time a bond is mentioned is after the job has already been won or worse, just before payment of the first valuation is due. At that point, time is tight, pressure is high and options can be limited. Getting a bond is not just about filling in a form. It’s about preparation, presentation and placing your business with the right surety. Approaching a surety directly can seem like the quickest solution but often isn’t as declines, delays, and poor terms can follow you long after a single bond is issued.

This is where obtaining your bond through a specialist surety broker like DRS makes the difference:

• Improves approval rates

• Helps to secure better wording and pricing

• Protects your balance sheet and capacity

• Acts as your advocate with your panel of sureties

• Ensure that bonds support your business rather than hold it back.

Step One: Understand What Is Being Asked For

Before approaching the market, it’s critical to understand:

• The type of bond required (performance, advance payment, retention, etc.)

• The bond value, duration, and expiry event

• The wording being requested by the employer

• How it interacts with the underlying construction contract

  
  

We regularly see contractors approach sureties directly, only to be declined because the request was unclear or poorly structured. DRS ensures the bond requirement is fully understood before any approach is made.

Step Two: Present Your Business Properly

Surety providers do not just assess the contract—they assess you. Key factors include:

• Financial strength and cash flow

• Track record and sector experience

• Management capability

• Existing bonded exposure

• Quality of internal controls and contract management

  
  

DRS’ role is to package this information in a way that tells the right story. The same contractor can receive very different outcomes depending on how their submission is presented.

Step Three: Access the Right Surety Markets

Not all sureties are the same. Some favour SMEs, others large contractors. Some specialise UK only whilst others support overseas risks. As a specialist surety broker, we:

• Know which markets are open and competitive

• Understand each surety’s risk appetite

• Avoid unnecessary declines that damage your market profile

This targeted approach saves time and protects your reputation.

 Step Four: Negotiate Terms—Not Just Price

The cost of a bond matters, but it’s only one part of the picture. Through DRS, you can negotiate:

• Bond wording and claim conditions

• Financial covenants and indemnities

• Aggregate bonding limits

• Reduction or expiry mechanisms

  
  

Without expert input, contractors often accept onerous terms that restrict future growth or expose them to unnecessary risk.

 Step Five: Plan for the Long Term

Our most successful contractors don’t arrange bonds one at a time. They work with DRS to build a bonding strategy. This includes:

• Pre-agreed facilities

• Forward planning for future projects

• Managing capacity as the business grows

• Support if a bond is called or challenged

  
  

Surety is relationship driven. DRS manages that relationship on your behalf.

If you know a bond is coming or even if you think one might be required, please get in touch and we will be happy to help. Getting a bond doesn’t have to be difficult.