CPA & Business Advisory Blog

How Contractors Can Grow and Strengthen the Relationship with their Surety

In order for a contractor to grow a long-lasting relationship with a surety, it is essential to understand how the surety analyzes various factors related to the contractor and their ability to perform and complete jobs.  Sureties and bonding agents rely on the three “Cs” when evaluating a potential contractor:

  • Capacity: refers to the skill and expertise that the contractor possesses in order to complete the job.
  • Capital: refers to the ability for a contractor to financially complete the job, examining working capital and equity.
  • Character: refers to the faithfulness of the contractor to complete the job.


Once the relationship between the contractor and the surety has begun, the three“Ms” lay the groundwork in order to build the relationship:

  • Meeting: meet regularly with your surety, bonding agent, and CPA to discuss updates to the industry review financial information.
  • Maintain: maintaining the relationship refers to the quality of the meetings and to develop trust between the surety and contractor.  Sureties are always appreciative when the contractor lets them know immediately when serious problems arise.
  • Mature: maturing the relationship develops over time and can mean the difference in getting the work or being rejected.  The surety is more likely to be receptive to a contractor that has invested time to mature the relationship.


Contractors that work on the three “Ms” to strengthen and grow their relationship with their surety have a much better chance at running a successful business.

Have questions on bonding or are you looking for an introduction to a surety or bonding agent? Post a comment below or contact our Real Estate and Construction Group at 440-449-6800.

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