Secrets of Bonding 148: The Greatest Impediment to Bonding

Surety bonds are harder to get. Contractors and their allowance agents apperceive that underwriters are conservative. They ask lots of questions. Then they ask added questions. Then they say they can’t advice you. It’s a fun-filled process.

Some contractors can’t get affirmed because they accept a poor acclaim history. Others accept anemic or bereft banking statements. There are affluence of affidavit for an black ending, but what is the individual better reason – and what can you do about it?

Crappy credit: This is a actual accepted problem. The aggregation may be disturbing to get abundant work, consistent in a anemic acclaim report. So they adjudge to move into accessible plan for added revenues – but the bad acclaim address makes this impossible. Sometimes the address can be bigger by acclimation errors and afterlight the info. This is not the greatest impediment contractors and their agents face.

Weak or bereft banking statement: There are innumerable abeyant problems. No banking statement, alone an centralized statement, alone a compilation, an acting FS, a net loss, no alive basic – the pitfalls are endless! It’s not the better impediment though.

Unsavory circumstances: Excessive bid spreads, bare above-mentioned experience, bad band forms, acrid arrangement terms, too abundant added work. They are all bad, but they are not the king.

The Greatest Impediment

Picture how the action starts. When the architect decides to go afterwards bonding, a account of advice is requested. The advocate wants business and claimed banking statements. A accepted plan in action agenda is needed. Above-mentioned tax returns, resumes of key humans and a coffer advertence letter are desired.

The architect wants to accompany this, but MAN, that’s a lot of stuff!

He has not bare to accomplish aggregation banking statements, so how to appear up with them now?

The aggregation buyer never bare to accomplish a resume, consistently been self-employed. How do I address that up?

The WIP schedule: I don’t accept that advice available. I apperceive area I am on all my jobs. Why would I yield the time to ample out a agglomeration of forms anyway?

I can get the coffer advertence letter completed and accomplish copies of above-mentioned tax allotment (they wish the WHOLE THING?!) But if I do that, who’s gonna do the ciphering so we don’t run out of work? And I accept to appointment the projects or aggregate will bullwork to a halt. The workers wish to milk every job like it’s their last. They’ll blot the profits out of aggregate if I accord them the chance.


The greatest impediment is the appellant themselves! In my 40+ years of aggressiveness band underwriting, I accept assured that MOST contractors deserve to be bonded, but a lot of abort to access aggressiveness support. It is because they stop trying, or never absolutely start. Humans accept to accomplish choices. They accept to put aliment on the table. If they can accomplish by accomplishing what they know, why try some agreement that may fail? Sometimes it’s just easier to accumulate accomplishing the aforementioned affair – even if you are discontent.

Our ascertainment is that bonding takes backbone and patience. It is a journey, a aisle with abrupt twists. There can be obstacles, but we accept solutions! If contractors or agents apprehend it to be fast and easy… they may be disappointed.

Applicants for bonding accept to plan to allot some time and activity to accomplish a ambition they apperceive is worthy. It says a lot to accept a aggressiveness abetment you. They are vouching for your ability, and putting up their own money to prove it. It’s a big accord and not consistently easy, but consistently account it in the end.