Prequalification of the Contractor


Surety is designed to prevent loss.  The prequalification process is an in-depth look at the contractor's business operations.  Contractors are prequalified by surety companies based on the following basic criteria:

  • Character - do they have a good reputation with past clients, and their suppliers?
  • Capacity - have they performed work of a similiar size and scope as the job they wish to be bonded for?
  • Credit - is their financial strength sufficient to support the desired project and any projects that they are currently working on?  Does the contractor have an established banking relationship and line of credit?  What is the contractor's credit history?


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