Surety Bond Tips for Start-Up Contractors

Starting a construction company today is far more complex than it used to be.

Years ago, reputation and grit could get you through the door—but now, gaining surety credit requires a strategic, well-documented approach. For new contractors, especially those without an established track record, qualifying for a surety bond program can feel like a steep climb. Here’s how to set your company up for success.

Understand the Surety Mindset

Surety companies aren’t just evaluating your ability to complete a job—they’re placing their trust (and financial backing) in your company’s leadership, planning, and financial health. Since many start-ups fail within the first few years, underwriters are naturally cautious.

To earn their trust, new contractors must demonstrate:

• A history of successful construction experience (even if under another company)
• Sound personal and business financial practices
• Transparency and organization in all documentation

Start Small and Build Up

While it’s tempting to pursue bonded public work right away, it’s wise to first complete smaller private jobs. This builds a performance history and generates real financials, which are far more valuable to underwriters than projections.

Consider entry-level bonding programs for small and emerging contractors that rely on personal credit scores. These programs have lower limits but can help establish a surety history.

Build the Right Team

A strong advisory team can help you present your company professionally:

• A surety-savvy agent
• A construction-oriented CPA
• A banker familiar with construction lending

Together, they help craft a compelling financial picture and guide you in meeting underwriter expectations.

Showcase Your Experience

Sureties bond people, not just companies. Include well-prepared resumes for yourself and your key employees. Highlight relevant experience, certifications, and progression in the industry. A solid personal financial statement is also critical—sloppy or incomplete submissions can damage your credibility.

Make It Personal

Surety relationships are built on trust. Meet with your underwriter and loan officer in person, know your financials, and tell your story with clarity and confidence. Do a dry run with your agent beforehand so you’re ready to answer tough questions.

Write a Real Business Plan

Your business plan should be more than just good ideas—it needs to reflect reality. Address:

• The market segment you’re targeting
• Public funding and upcoming project opportunities
• Your competition and value proposition
• Cash flow management for future projects

Include a 3-year project pipeline with realistic estimates of success.

Get Your Financial House in Order

Sureties look at your company’s capital, debt, and how responsibly you manage money. Use owner financing over credit cards, and secure a line of credit from a bank. Be prepared to personally guarantee both the surety and the bank.

A good CPA is non-negotiable—accurate, timely financial statements are a must. Delays or poor recordkeeping will raise red flags.

Join the Right Circles

Memberships in industry groups like AGC, ABC, or CFMA offer networking, training, and access to others who’ve successfully navigated the surety process. Use those connections to your advantage.

Final Word:
Earning surety credit as a start-up takes time, planning, and professionalism. With the right team, financial discipline, and a well-crafted strategy, new contractors can build a strong foundation for long-term bonding success.