Surety Bond Prep Checklist

Business: ________________ Contact: ________________ State or jurisdiction: ________________ Bond type being prepared: ________________ License number: ________________ Project or bid: ________________ Bond amount or contract amount: ________________ Prep date: ________________

Use this checklist to gather information before requesting a contractor surety bond. Requirements vary by surety, bond form, agency, owner, and contract.

Use this section when a state, city, county, or trade board requires a license or permit bond before work, licensing, or permit activity.

• Required bond form from the licensing board, permit office, or agency
• Exact legal business name and business address
• Contractor license number, trade license, or application number
• Required bond amount shown by the agency or bond form
• Owner, officer, or qualifying individual information requested by the surety
• Business formation details, such as entity type and start date
• Credit information for owners or indemnitors, if requested
• Prior bond claim or disciplinary history notes, if any
• Filing instructions, obligee name, and effective date required by the agency

Reminder: A license bond is a compliance obligation. It is not the same as general liability insurance and does not usually guarantee completion of a specific project.

Use this section for bid, performance, or payment bonds tied to a project, solicitation, subcontract, or owner requirement.

• Bid package, contract, subcontract, or owner bond requirement
• Bond form, penal sum, and obligee information from the project documents
• Bid amount, contract amount, or requested bond amount
• Project scope, location, start date, and expected completion date
• Current work-in-progress schedule or backlog summary
• Recent financial statements for larger contract bond requests
• Prior job history with similar project size and trade scope
• Job references, owner references, or general contractor references
• List of key subcontractors and suppliers, if relevant
• Notes on prior bond claims, defaults, disputes, or unpaid taxes, if any

Bid bonds support the bid process. Performance bonds protect the owner if the bonded contractor fails to perform the contract. Payment bonds protect subcontractors, laborers, and suppliers for covered labor and materials.

Surety underwriting is closer to credit review than ordinary insurance placement. Before sending the application, review these items.

• Credit report or credit authorization is ready for the owners or indemnitors requested
• Financial statements are current and consistent with the project size requested
• Work-in-progress schedule matches current backlog and job status
• Job history supports the size and type of work being bonded
• Bond amount and premium are not confused; the premium is the cost paid to issue the bond
• Required indemnity documents can be reviewed by the business owner
• Any collateral request, capacity limit, or reduced bond amount is documented
• Insurance certificates are handled separately from the bond request

A surety may approve, decline, reduce capacity, request collateral, require better financials, or limit the contractor to smaller projects.

If ordinary surety approval is difficult, ask whether a participating surety can consider the SBA Surety Bond Guarantee Program.

• Business may be small enough for SBA program review
• Bond request is for a bid, performance, payment, or ancillary bond
• Contract amount can be checked against current SBA program limits
• Business can still meet credit, capacity, and character review
• SBA fees for performance and payment bond guarantees are understood
• Bid bond guarantee fee treatment is confirmed before applying

SBA support can help qualified small businesses obtain bonds, but it does not remove underwriting.