Qualifying for a bond is unique for each account. The qualification and rate charged is based on many factors. The standard answer for qualification is the three ‘C’s of underwriting; Capital, Character, and Capacity.
Capital: The financial statements
Character : Account references
Capacity : The contractor’s ability to complete the work
That being said bond qualification will vary depending on the size of the program desired and the particular risk associated with the class of work performed. We have included some general guidelines below which should give one a general idea of what is required to qualify.
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