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  1. Raulmanny
    Raulmanny is offline Junior Member
    Join Date
    Jun 2005
    Posts
    1

    contractor's ratios

    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!
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  2. Surety Guy
    Surety Guy is offline Administrator
    Join Date
    Jan 2005
    Posts
    113

    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.
    Apply for Surety Bonds
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