What must a contractor provide to obtain a surety bond?

To obtain a surety bond, a contractor must provide a written application and financial statements. This process is essential as it allows the surety company to evaluate the contractor's creditworthiness and financial stability. The written application typically includes information about the contractor's business, experience, and the specific project for which the bond is required.

Financial statements, which may consist of balance sheets and income statements, help the surety assess the contractor's cash flow, assets, liabilities, and overall financial health. This information is crucial for the surety to determine the risk involved in issuing the bond and to set appropriate terms and conditions. Demonstrating solid financial backing instills confidence in the surety company, ensuring they are willing to take on the responsibility of the bond.

While proof of insurance and credit reports can be relevant in assessing a contractor's risk profile, the primary requirements for a surety bond specifically include the written application and financial statements, as these documents provide the foundational data needed for the bonding process.