Who is requesting this letter?
This helps us format the "Authority To Bond" correctly.
Even if the job doesn't strictly require it, attaching a Bondability Letter to your proposal makes you look more professional and financially stable than your competitors.
What does this letter do?
A Bondability Letter (often called a "Good Guy Letter") is an opinion from the surety company. It tells the owner:
- Vetted: We have checked your credit and history.
- Capable: You are approved for $X Amount in contracts.
- Supportive: We intend to issue bonds for you if awarded.
Owner Credit Score
We establish your "Bonding Program" based on your credit strength.
What capacity limits do you need?
This is the max dollar amount you can bid on.
Single Limit: The biggest single job you can handle.
Aggregate Limit: The total value of all your open jobs combined.
Need Insurance Certificates (COI)?
You will need these along with your bond letter to prequalify.
Understanding Your "Bonding Capacity"
Prequalification is not a binding guarantee of a bond. It is a snapshot of your financial health at this moment. Surety companies look at your "Three Cs" to determine your limits.
The Three Cs of Surety:
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Character: Your reputation, credit score, and references. Do you pay bills on time?
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Capital: Your financial strength. Cash on hand, working capital, and net worth.
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Capacity: Do you have the manpower, equipment, and experience to do the job?
How much does a Bondability Letter cost?
We view prequalification as the start of a long-term relationship.
Prequal Letter
$0.00 Cost
We issue the letter for free to help you win the bid. We only charge if you actually need the final bond.
Bond Line Setup
$0.00 Cost
Establish a standing "Bonding Line" (e.g., $1M) so you can get unlimited letters instantly.
If Awarded
Of Contract Price
You only pay a premium if you win the job and need the Performance Bond issued.