Who we serve
Surety bonds for general contractors
As the prime, your name is on the bond line of the invitation to bid. Get the bid bond for the proposal and the payment and performance bonds at award, backed by one bonding line.
Requesting a bond does not affect your credit.
When bonds are required
When general contractors need bonds
As the prime contractor you are usually the party named on the bond requirement in the invitation to bid, so a bid bond is due with the proposal and payment and performance bonds are due at award.
Bid bond due with the proposal on nearly every public job, typically 5 to 10 percent of the bid.
Payment and performance bonds for the full contract value due at award.
Federal work over $150,000 requires bonds under the Miller Act, and state Little Miller Acts mirror it on state and municipal work.
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
The GC pays first and collects last. Mobilization, early subcontractor draws, and insurance all land before the first pay application clears, while 5 to 10 percent retainage holds back margin until closeout.
That is the gap CapStream closes with mobilization funding up to 20% of the contract price.
General contractor FAQ
Questions from the field
The invitation to bid sets the amount, and it is expressed as a percentage of your bid rather than a flat number. Five to ten percent of the bid price is the normal range on public work, so the bond scales with the proposal you submit.
Yes. Underwriting weighs your contracting experience and the largest jobs you have completed rather than requiring a history of bonded work, and the SBA Surety Bond Guarantee Program extends capacity for contractors who are new to bonding.
Yes. Because the bond is paired with a project financing commitment, the funding strengthens your balance sheet as you take on more work, and your bonding line can be raised as your completed job size and financials grow.
Bonds up to $10 million, no minimum
Requesting a bond or loan does not affect your credit.