Getting approved for a $1 million performance bond requires more than simply having strong revenue. Sureties may evaluate a contractor's character, capacity, capital, financial statements, working capital, project experience, backlog, management team, credit, and the specific construction project. Learn what contractors can do to prepare for larger bonding requests, strengthen their financial profile, improve bonding capacity, and work with a surety professional before biddin

Why do contractors get denied for performance bonds? Learn the most common reasons sureties decline or question a bond request, including insufficient working capital, weak financial statements, poor credit, limited project experience, excessive backlog, weak cash flow, poor job-cost controls, excessive debt, and projects that exceed a contractor's demonstrated bonding capacity.

Performance bonds are often required for commercial construction, government contracts, and public works projects. This guide explains how contractors can qualify for a performance bond by improving their financial strength, building relevant experience, maintaining good credit, managing project backlog, and preparing the necessary documentation. Learn what surety companies look for and how to improve your chances of bonding approval.