Performance bonds are financial guarantee instruments. The bonding company guarantees the project owner that you will finish the project per plans and specifications.

If you cannot finish the project, the bonding company has the choice of 1) Funding you until completion; 2) Bringing in a completing contractor; 3) Paying the penal sum of the bond.

In the event the bonding company expends funds to fulfill your obligation, they will seek reimbursement from you, also known as indemnification, to make them whole again.

This makes the bond underwriting process much like obtaining a bank loan – the bond company extends credit on your behalf. Like a bank, they don’t expect to lose any money.

Through the underwriting process, a bonding company will determine that you have the Capital to finance the project, the Capacity (tools, equipment, manpower) to build the project, and the Character (track record and reputation) to finish the job you started. These are known as the three “C’s” of bond underwriting.

At Mid-Atlantic Surety, we are very familiar with this process and know how to go about obtaining the bonds our clients need.

Understanding your operation, your business plan and your bond requirements enables us to develop a thorough submission and to present it to the appropriate bond companies.

The following is a list of basic underwriting information. Depending on individual circumstances, more or less information may be required.

Completed Surety Questionnaire
Corporate year-end financial statements (past three-to-five years)
Six-month interim statement if available
Current corporate tax returns
Current Work-on-hand schedule
Personal financial statements from all owners
Current personal tax returns
Resume on all owners/key employees
Bank reference letter

If you have any questions, please Contact Us