What may trigger the need for a contractor to secure additional bonding?

Securing additional bonding may be necessary when a contractor takes on larger projects. This is primarily due to the increased financial risk and liability associated with more substantial contracts. Larger projects usually involve higher monetary values and more complex scopes of work, which can lead to a greater potential for defaults or disagreements.

Bonding serves as a form of protection for project owners, ensuring that the contractor is financially capable of completing the project according to the agreed-upon terms. When a contractor engages in a larger project, they may need to demonstrate that they have the financial stability and capacity to manage the scale of the work, which often involves applying for higher bond amounts.

In summary, taking on larger projects increases a contractor's exposure to risk, making it essential for them to secure additional bonding to reassure clients and stakeholders that they can fulfill contract obligations.