A lot of contractors miss bids, not because they lack the skills or qualifications, but because they trusted the wrong company to back them. The bonding process is more than paperwork; it’s a relationship that directly affects your chances of winning work.
This blog gives you a no-nonsense look at the seven things you should always check before choosing a company to issue your bid bonds. You’ll also get a few warning signs to help you steer clear of the ones that might cause more harm than help.
Know What You Need Before You Start Looking
Before reaching out to anyone, take a moment to understand what you actually need from a bid bond company. The size of your projects, how often you bid, and your financial setup all play a role here.
If you’re handling small, local jobs, your requirements will be very different from a firm chasing federal contracts. Some companies are set up to work with newer contractors and small businesses. Others focus on large projects or repeat clients with an established track record.
Being clear about your needs helps you spot the right fit early, saving time for both sides.
Don’t Skip the Background Check
You wouldn’t hire a subcontractor without checking their work history. The same should go for bid bond companies. Always confirm that the company is licensed in your state and that their bonds are backed by an approved surety listed on the U.S. Treasury’s site.
Take it one step further and look into their ratings. Reputable firms work with sureties that carry an “A” or better rating from trusted agencies like A.M. Best. Ratings aren’t just numbers as they reflect financial strength and stability, two things you definitely want when it comes to backing your bids.
Also, check for reviews, references from industry peers, or any complaints filed online. Good reputations don’t happen overnight; if a company’s been doing right by contractors, you’ll hear about it.
Look at Who They Work with and What They Offer
Some bonding companies can only offer products from one or two sureties. That might work fine for basic jobs, but if you need something flexible—say, a bond for a high-value contract with specific terms—that could be a problem.
The broader their network, the more likely they are to find something that fits your unique situation. It also means better odds of competitive rates.
Watch for signs of limited options. If they push one product hard or seem vague about alternatives, that could be a red flag.
How They Handle the Application Process Matters
Applying for a bond can feel like jumping through hoops. Some companies keep it simple, while others make it a full-time job. Ask upfront how they handle applications. Is it all online? Do they support quick approvals for smaller bids?
You’ll usually need to submit financials, resumes, and project histories. But what sets companies apart is how they guide you through it.
Right now, more bid bond companies are using fast, digital systems to cut down on time and hassle. If they’re still stuck in fax-and-forms mode, that might be a sign they’re behind the times.
Do They Help You Grow, or Just Stamp the Paper?
Some providers do the bare minimum, issue the bond and move on. Others actually help you plan for future projects. If you’re aiming to increase your bonding capacity or move into bigger contracts, it helps to work with someone who sees the long-term picture.
Ask if they offer guidance on how to improve your file or help you spot potential roadblocks. Do they flag contract clauses that could hurt you later? Will they go to bat for you with the surety if your financials need explaining?
A company that’s willing to talk through all of that is worth sticking with.
Be Clear on What It Costs
Most bid bonds don’t cost anything directly, especially if you’re working with a good surety partner. But that doesn’t mean there are no costs at all. Check for admin fees, annual charges, or minimum costs tied to other services like performance bonds. And get all of that in writing.
If a company isn’t upfront or keeps forgetting to send details, that’s a bad sign. You should never have to guess what you’re being charged. Transparency builds trust. Vague answers build problems.
Pay Attention to Their Response Time and Attitude
Ever emailed a company and waited days for a reply? In the bidding world, that kind of delay can lose you a job. A good bond partner should respond quickly and clearly.
Before signing up, send them a basic question and see how they handle it. Do they answer directly, or do they talk in circles? Do they seem like they’re doing you a favor just by replying?
Conclusion
The construction industry is changing. Digital bidding, more competitive projects, and stricter regulations are all becoming the new standard. You’ll need bid bond companies that can keep up, not ones that slow you down.
Think of your bonding provider as a strategic partner. You want someone who helps you win, not someone who just fills out forms. So take a little extra time now to choose wisely. It could make all the difference down the road.
Need to reassess your current provider? Now might be the right time.
