What information needs to be provided to secure Bonding Capacity

Securing strong bonding capacity is a critical step for construction firms that want to pursue larger, more profitable projects.

At DRS, we help you present this information clearly, accurately, and strategically so that underwriters make confident decisions in your favour. While every contractor’s situation is unique, surety underwriters consistently evaluate a core set of information to determine bonding eligibility and limits:

1. Company Background & Experience: Structure, shareholding (including shareholder history), and composition of the board

2. Financial Information: Consolidated audited financial statements, management accounts, forecasts including cashflow, aged debtor and creditor reports

3. Work History and Project Performance: Completed projects listing with contract sizes, work in progress, and details of any jobs in delay/making losses/in dispute.

4. Banking & Credit Relationships: Bank information letters, lines of credit and loan agreements

5. Underwriting meeting: in person or virtually

6. Bond Specific Information: Proposed bond wording, completed application form and a copy of the contract including schedule of amendments

Transparency here is key to avoid underwriting concerns. Honesty lays the foundation for a long-term partnership between contractor and surety, all expertly managed through DRS. 

If you need support in managing your bonding pipeline, please get in touch and we will be happy to help.