The most successful contractors always seek to maximize bonding capacity through an ever-improving surety relationship. Given the inevitable market tightening, securing and enhancing surety bond credit is one of the RESIZE- May 2011- Construction Accounting- Four C's of Suretysingle most important actions for a construction company. As a CPA firm serving thousands of construction companies, we’ve learned that contractors—especially in the face of construction downturn—should continuously build upon the four C’s of surety credit.

The Four C’s of Surety Credit Impacting Construction Companies Are:

  1. Capital: Does the construction company and its’ owner(s) have the financial strength—corporately and individually—including adequate working capital, equity, and credit to meet the project’s financial obligations?
  2. Capacity: Does the construction company have the personnel, equipment, and experience to complete the project on-time and within budget?
  3. Character: Does the construction company have a positive reputation in the market?
  4. Communication: Does the construction company maintain a continuous dialogue with its surety company and surety agent?

Some contractors without adequate financial resources, credit, experience, and project opportunities may not survive these market conditions. However, construction firms may not only survive but thrive by maximizing opportunities with the help of specialized construction professionals including CPAs, attorneys, and bankers. Call CRI’s construction CPAs for assistance designed to improve your surety credit and maximize your bonding capacity.