Who we serve
Surety bonds for electrical contractors
GCs bond electrical scopes above set thresholds, and school, municipal, and federal jobs bond almost every time. Be ready before the award letter, not after.
Requesting a bond does not affect your credit.
When bonds are required
When electrical contractors need bonds
On public work the GC usually requires subcontractor payment and performance bonds on electrical scopes above a set dollar threshold, and school, municipal, and federal jobs bond almost every time.
Subcontractor payment and performance bonds required by the GC above a dollar threshold on public work.
Direct-to-owner electrical contracts on public buildings carry their own bond requirements.
Some jurisdictions also require separate electrical license bonds.
Compare the three bond types on our surety bonds overview, or see what a bond costs in our bond cost guide.
Underwriting
What underwriting looks at
CapStream underwrites on contracting experience, company ownership, financials, and largest jobs completed, and pairs the bond with a project financing commitment that strengthens the balance sheet.
Experience and completed work
Your contracting history and the largest jobs you have finished carry more weight than a record of prior bonded work.
Ownership and company details
Who owns the company, how long it has operated, and how the business is structured.
Financials
Working capital, net worth, and the trend in your financial statements set the size of your bonding line.
A financing commitment behind the bond
Because the bond is paired with project funding, the cash that lands on the job strengthens the balance sheet the surety underwrites.
Cash flow
The cash flow squeeze
Switchgear and distribution equipment deposits are due at release, months before the gear ships, and copper and wire pricing moves while you wait. That material outlay lands long before your first payment application.
That is the gap CapStream closes with mobilization funding up to 20% of the contract price.
Electrical contractor FAQ
Questions from the field
Only when the general contractor or owner requires them, which is common above set dollar thresholds on public work. When the requirement applies, you provide payment and performance bonds on your scope just as the GC does on the full contract.
No. A license bond satisfies a licensing authority and stands behind your conduct as a licensed electrical contractor. A contract bond guarantees your performance and payments on one specific job, and a license bond is never a substitute for it.
Premium is a percentage of the bonded contract value and depends on your financials, contracting history, and the size of the scope. Use our bond cost guide and calculator to estimate the premium on your next electrical subcontract.
Bonds up to $10 million, no minimum
Requesting a bond or loan does not affect your credit.