Maintaining a competitive edge in today’s construction industry means partnering with the right construction bonding company. Choosing the wrong company for your needs can cost you time, money, and your professional reputation. When shopping around for bond pricing, ensure you partner with a surety producer representing a construction bonding company that is right for your business. While a great price does not necessarily mean you are getting a bad deal, it could be reflective of the company’s rating, where they are licensed, or the bonding capacity determined.


Most bonding companies are rated by A.M. Best Company, according to the company’s stability, history, and ability to pay a claim. Companies are rated A++ through F and S (suspended rating). Ensure your surety chooses the best rating for your bonding needs. You may not need an A-rated carrier, but some obligees will only accept bonds from an A-rated bonding company.


Be sure to choose a company that is licensed in your state. Your own licensing and bidding may be held up if the obligee rejects your bond due to a lack of state licensing of your chosen company. The principal on the bond would also be wasted, costing you valuable resources in an industry where margins are tight. We are licensed to write bonds in all 50 states, ensuring your single bond or aggregate bond fulfills stated requirements.


Bonds needed by construction companies are normally larger than bonds needed for small businesses. Construction companies often need multiple bonds, sometimes in several states. Besides checking state licensing, make sure the company you choose can meet your bonding capacity. Your bonding capacity is the maximum amount of “credit” that a bonding company will offer you.


Most government construction projects require bonding through a company which is T-listed. This means that the United States Treasury has reviewed the company’s financial statements and company strength. The Treasury then publishes these T-listed companies in its annual Listing of Approved Sureties. We partner with a number of approved, T-listed bonding companies in the Department’s list.


To qualify for a construction bond, companies will look for good business and personal credit, a solid track record of work, liquidity, and company organization. Good communication with your surety will improve your chances of qualifying for the bond or bonds of your choice. NFP has options available even for construction companies with limited experience and bad credit.


Not all surety companies are equal, and neither are the bonding companies with whom they work. When choosing a surety bonding company, the most important factor is whether they are licensed in your state. The rating of the bonding company could be just as important, though, if the obligee requires a certain rating.

For construction companies bidding on government contracts, ensure the bonding company you choose is listed in the Treasury Department’s annual list of approved companies. Finally, if you cannot get the bond capacity you need, it may be time to shop around.