Most agencies can write a bond. Few understand how surety actually works, and even fewer can help you build the bonding capacity to grow your business and bid the projects you want. We've spent 30+ years working with contractors who started where you are now. Pick the path that fits where you are today.
Three Paths to Get Bonded
Need a Bond Fast
License bond, single bid bond, or a one-off project bond under $1M. We can bond you on a one-page application, often the same day. Built for fast turnarounds and license requirements.
Build a Bonding Program
You're bidding bonded work regularly and ready to set up real capacity. Take the Bond Scorecard to see where you stand on capital, capacity, and character. Then we'll build the program with you.
Get Unstuck
Bond got declined. Capacity capped. Current broker can't get you to the next level. We review existing programs, identify what's holding capacity back, and build a path forward.
Or call (801) 505-5500 and talk to the bond team direct.
See What Your Bond Will Cost
Most contractors land on this page wanting one number: how much. Use the calculator below for a realistic ballpark on license, performance, payment, or bid bonds. The performance bond mode shows credit-only and program rates side-by-side - the same comparison every contractor should see before they pay for a bond.
Estimates only. Actual premium subject to surety underwriting. Open the calculator on its own page.
Where Do You Stand on Bonding Capacity?
The calculator tells you what a bond will cost. The Bond Scorecard tells you whether you can get one - and at what tier. It walks you through the three areas every surety underwriter evaluates: capital, capacity, and character. You answer eight questions. We tell you what's working, what's holding you back, and what your rate tier would actually look like.
The Grit Bond Library
Everything we have built for contractors who want to get smart on surety. Browse by category, drill into the topic you need, take what is useful. We update these pages constantly because the bond market moves and the rules change.
Bid, performance, payment, and maintenance bonds for contractors bidding public and private work. | License, permit, regulatory, and miscellaneous bonds for businesses across industries. |
The full guide to surety bonding for contractors. Plain English, no jargon, written by people who actually do this every day. | The strategic playbook for contractors who want to bid bigger work. Working capital, financials, surety relationships, perpetuation. |
Working checklists and templates the bond team uses with clients. Yours to download and use. | Resources for the professionals who advise contractor clients. Built specifically for CPAs, bankers, attorneys, and CFOs.
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Looking for advisor-specific resources? Visit the dedicated CPA, banker, and attorney library ›
Frequently Asked Questions
What is a surety bond?
A surety bond is a three-party financial guarantee. The principal (you, the contractor) promises to perform an obligation. The obligee (the project owner or the licensing authority) is the party requiring the bond. The surety (the bonding company) guarantees that if the principal fails to perform, the obligee gets compensated. The bond protects the obligee, not the contractor. For contract bonds, that means the project gets finished even if the contractor can't finish it.
Do I need a surety bond?
For most public works projects above $150,000, federal law (the Miller Act) requires the contractor to provide a performance bond and a payment bond. State law (Little Miller Acts) extends similar requirements to state and local public projects. Many private project owners require bonds as well, particularly for larger construction projects. Most state contractor licensing boards also require a license bond as a condition of licensure.
How much do contractor surety bonds cost?
For license bonds and small commercial bonds, premiums typically run 1% to 3% of the bond face value annually for contractors with strong credit. For performance and payment bonds, premiums are calculated on a sliding scale by contract amount, typically blending to 1.5% to 2.5% for standard market contractors. Use our bond cost calculator for a realistic estimate based on your specific situation.
What are the parties to a surety bond?
Three parties: principal (the contractor or business required to provide the bond), obligee (the party requiring the bond - usually a project owner or government agency), and surety (the bonding company that guarantees the obligation). The contractor pays the premium. The obligee receives the protection. The surety underwrites the credit decision.
How do contractors qualify for surety bonds?
Sureties evaluate contractors on the "three Cs" - capital, capacity, and character. Capital means working capital, net worth, and financial strength. Capacity means project experience, equipment, and operational ability. Character means personal credit, business history, and references. For credit-based bonds up to $1 million, personal credit is the primary factor. For larger bonded programs, the full three Cs review applies. Take our Bond Scorecard to see where you stand.
Why do contractors get declined for bonds?
The most common reasons: weak personal credit, undercapitalization (not enough working capital relative to the bond size), missing or incomplete financial statements, no bonded project history, large open work-in-progress balances, recent claims or losses, or poor-quality CPA work. Most declines can be addressed with the right plan. We work with contractors to identify and fix the underlying issue rather than just shopping the file.
What's the difference between a credit-only bond and a bonding program?
A credit-only bond is approved primarily on personal credit, capped around $1 million in bond size, and underwritten on each transaction. A bonding program is an ongoing relationship with a surety based on full underwriting (financial statements, work-in-progress, banking, project history). Programs come with pre-approved single-job and aggregate limits, lower per-bond rates, and faster bid bond turnaround. Programs are the path for contractors bidding bonded work regularly.
How long does it take to get a bond?
For credit-based bonds (license bonds, small contract bonds), often the same day with a one-page application. For bonded programs (bid bonds within your approved limits), often within hours of the request. For new programs that require full underwriting review, typically 5 to 10 business days from a complete file submission. We tell you up front what timeline to expect.
Want a Deeper Read?
How surety underwriters actually evaluate a contractor
Surety underwriting follows the "three Cs" framework, but each C carries different weight depending on bond size. For bonds under $1M, character (personal credit, business history, references) carries roughly 60% of the decision. For programs $1M to $5M, capital (working capital, net worth, banking relationships) becomes equally weighted. For programs above $5M, capacity (track record, project complexity, management depth) takes over.
Underwriters look for specific signals that an outsider might miss: stable working capital ratios across multiple periods, clean WIP schedules without large under-billings, CPA-prepared statements with no qualified opinions, and personal financial statements that show liquidity outside the business. Red flags include large profit fluctuations, related-party transactions on the balance sheet, and bond denials in the recent history that aren't explained.
Common reasons a contractor gets declined and how to fix each one
Five patterns we see most often:
- Weak personal credit (FICO under 650). Fix: 6-12 months of focused credit repair, or bring on a co-indemnitor with strong credit, or apply through the SBA Surety Bond Guarantee Program.
- Insufficient working capital. Fix: build retained earnings before taking on bonded work, secure a working line of credit from a construction-friendly bank, or limit single-job size until capital catches up.
- Missing or low-quality financial statements. Fix: engage a construction-experienced CPA, move from compilation to review or audit as program size grows, ensure WIP schedules are current and tied to GL.
- No bonded project history. Fix: start with smaller bonded subcontract work to build a track record, document private bonded projects, use the SBA program as an on-ramp.
- Recent claims or contract losses. Fix: address the underlying cause (estimating, project management, cash flow), document corrective actions, write a clear narrative for the surety to read.
What documents you need to submit for a real bonding program
The standard underwriting package includes:
- Three years of company financial statements (CPA-prepared minimum, review or audit for larger programs)
- Personal financial statements for every owner with 10% or more equity
- Current work-in-progress schedule (cost-to-complete basis)
- Completed project list with contract amounts, locations, and obligees
- Banking reference and current line of credit details
- Surety bond application (we provide the template)
- Continuity / perpetuation plan documentation
- Resumes of key management
For first-time program submissions, expect 5 to 10 business days from complete file to capacity letter. Returning clients with annual updates often process in 2 to 5 days.
Ready to Talk?
Three real ways forward, depending on what you need today.
Estimate the CostRun the calculator. See what your bond will cost in seconds. |
Take the ScorecardEight questions, real assessment. Where do you stand on capacity? |
Call the Bond TeamTalk to a real person. No phone tree, no voicemail tag. |
What Contractors and Business Owners Say
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