Bid bonds, performance bonds, and payment bonds each serve a different purpose in construction projects. A bid bond helps protect project owners during the bidding process, a performance bond provides protection if a contractor fails to fulfill a bonded contract, and a payment bond helps protect eligible subcontractors and suppliers who are not paid. Learn how these bonds work, when they may be required, and how contractors can prepare to get bonded.

What do surety companies look for in a contractor? Learn how sureties evaluate contractors before issuing bonds, including the Three C's—character, capacity, and capital. This guide explains how financial statements, working capital, backlog, project experience, management, credit, profitability, banking relationships, and the specific construction project can affect bonding approval and a contractor's ability to qualify for larger bonds.

Want to qualify for larger construction bonds? Learn how surety companies evaluate contractors and what you can do to increase your bonding capacity. This guide covers working capital, profitability, financial statements, project experience, backlog, credit, job costing, management, and contract review. Discover how preparing your construction business financially and operationally can help you pursue larger projects and stronger bonding opportunities.

Getting your first performance bond can be challenging if you have never worked with a surety before. This guide explains how contractors can prepare for their first performance bond, what sureties typically review, what financial information may be required, how credit and experience can affect underwriting, how much a performance bond may cost, and what contractors can do to build bonding capacity over time.