contractor's ratios

[Raulmanny]

I'm doing a term paper on surety bonds and I'll appreciate any help !
These are the questions

Are there any particular ratios that bonding organizations use to rate contractors?
To what extent do the above mentioned factors affect bonding capacity?
How can a construction organization improve its bonding capacity?
Thanks!

[Surety Guy]

Raul,

While bonding comanies generally have similar underwriting guidelines, there are no set standards which they all abide by.

Bonding capacity is based on the financial strength of the company.

Bonding capacity is increased as the principal becomes less of a risk and grows financially.


It is hard to not give you general answers, as companies are unique and are underwritten on a case by case basis. It may help if you get more specific.