How Do I Increase My Bonding Capacity?

Derived from NASBP’s Answers to 51 Questions Small Contractors Ask About Bonding Like bank credit, bonding is mainly dependent on strong financials and adequate liquidity for a contractor to take on construction projects. Bonding capacity is the maximum amount of...

What is a Letter of Bondability?

A Letter of Bondability, also known as a Good Guy letter or Sunshine Letter, has been around for a long time. Over the years, these letters have become stricter on what is required. In the past, agents would be able to prepare this letter on their own letterhead....

The Importance of the Bid Spread

Being the lowest bidder on a job can be quite exciting. However, depending on the spread between the lowest bidder and the others, the winner may be at risk. This is why surety underwriters request the other bid amounts to evaluate the spread. If the spread is greater...