Bonding capacity determines the size and number of projects a contractor can pursue. This guide explains how surety companies evaluate bonding limits, including working capital, financial strength, credit history, business experience, and current workload. Learn proven strategies to increase your bonding capacity, qualify for larger projects, improve your financial profile, and position your company for long-term growth.

Payment bond costs typically range from 1% to 3% of the contract amount, depending on factors such as credit score, business experience, financial strength, and project size. This guide explains how payment bond pricing works, what affects your premium, how contractors qualify, and strategies for obtaining competitive rates on public works, government, and commercial construction projects.