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Securing a contract surety bond or commercial surety bond is an essential part of many major projects, whether it’s mandated by law or required by private owners. It’s a multistep process, but it doesn’t have to be overwhelming. To avoid delays and maximize your chances of getting to “yes,” it’s smart to get the necessary paperwork in order ahead of time. Here’s what you’ll need:

Application
The first step to getting bonded is completing the application or questionnaire that your agent provides you. The questions may vary depending on what kind of bond you need, but you can expect to be asked for your tax ID number, company and ownership details, the bond type and amount, and contact details for all key personnel.

Financials
You’ll need to provide evidence of your company’s financial position in order to demonstrate that you have sufficient leverage for the bond and the capacity to meet the demands of the contract. For most smaller businesses, you’ll be asked to furnish balance sheets, income statements, retained earnings statements, and cash flow statements for the current and previous years. You may also need to show personal financial statements for majority shareholders, corporate and/or personal tax returns, and recent bank statements. In some cases, larger firms may only need to provide their most recent audited report.

Work In Progress Form
Another important component of the surety bond process is a Work In Progress (WIP) Form, which is also sometimes referred to as a Work In Hand Report or a Status of Contracts Report. This document should detail the jobs you’re working on now, the jobs in your pipeline, and the jobs you’ve completed in the last year. Provide dates, expenses, and billings for each, and list other outstanding surety bonds.

References
Letters of reference from suppliers, clients, subcontractors, lenders, and/or trade associations can provide additional assurance to surety bond underwriters that your company finishes its jobs and meets its financial obligations. These aren’t always required, but they can boost your chances of approval with the most favorable rates and terms. It often takes a while for busy professionals to respond to letter requests, so be sure to ask as early as possible.

Resumes
Again, these aren’t always required, but they can reinforce your application by demonstrating that your team has the skills and experience to deliver on the contract. Be sure to include full employment histories, industry credentials, and notable projects completed.

Certificate of Insurance
Ask your agent(s) for a current Certificate of Insurance (COI) to show that you’re carrying the right level of coverage for the type and scope of work you’re performing. Surety bond underwriters want to see that you’re operating within the law and industry best practices and that your project represents an acceptable amount of risk. Depending on the contract in question, this might include general liability insurance, errors and omissions (E&O) insurance, and workers’ compensation insurance.