Learn
How to Get Bonded as a Contractor
To get bonded, you apply to a surety company, which reviews your credit, finances, and experience and issues a bond if you qualify. License bonds are often approved the same day. Project bonds take one to three business days once underwriting has what it needs.
Start with the requirement
Find out which bond you need, the amount, and the bond form. For a license, that comes from your licensing board. For a project, it comes from the bid documents or the contract.
What sureties look at
Underwriters weigh character, capacity, and capital. For small license bonds, a credit check is often enough. For larger project bonds, expect to share more.
- Personal credit of the owners
- Company financial statements, reviewed or audited for larger programs
- A work-in-progress schedule showing jobs, costs, and billings
- Experience on similar projects and a list of completed work
- Banking and trade references
How long it takes
License bonds are quoted and issued online, usually the same day. Bid, performance, payment, and maintenance bonds are underwritten. Allow one to three business days after the submission is complete, and longer for a first-time bonding relationship.
If your credit or financials are limited
You can still get bonded. License bonds are available to most applicants at a higher rate. For project bonds, sureties may ask for collateral, a co-indemnitor, or a smaller starting bond limit. Paying on time and completing jobs builds a record that qualifies you for larger bonds.
After you are bonded
File the bond with your licensing board or deliver it to the owner. Keep your surety informed about large new contracts, and renew license bonds before they expire. A strong relationship with one surety makes each new bond faster.
Related bonds
Contractor License Bond
Required by your state or city before you can get or renew a contractor license.
Bid Bond
Guarantees your bid. If you win and walk away, the owner is paid the difference.
Performance Bond
Guarantees you will finish the project under the contract terms.
Common questions
Can a new contractor get bonded?
Yes. License bonds are widely available to new contractors, and smaller project bonds often qualify on personal credit and a basic financial statement.
Do I need audited financial statements?
Usually only for larger bond programs. Smaller bonds can be approved on personal credit and a simple company statement.
How do I qualify for a larger bond limit?
Show profitable completed jobs, healthy working capital, and good payment history. Sureties raise limits as the record grows.