February 26, 2021

IECRM Member Forum Recap: Bonding in Today’s Environment and Being Prepared

IECRM Member Forum: Bonding in Today’s Environment and Being Prepared

Wednesday, February 10, 2021
Hosted by IECRM

IECRM is honored to provide our members with value-rich forums that pertain to our industry. Below you will find a bulleted recap of the discussion and helpful links to resources.

Watch the VIDEO RECORDING of this week’s forum: Bonding in Today’s Environment and Being Prepared.

“Please take a moment to watch the Bonding discussion during this week’s Forum. I have had several contractors mention to me over the last several months that they have seen an increase in requests for bonds, increased competition for projects which has resulted in bond requests, or requests for surety bonds that they’ve never had to present before. Whether you already have a bonding agent relationship and are familiar with the process OR if you have never prepared your financial statements to be “bond program ready,” there is great information in this recap for you.”
– Marilyn

Upcoming Safety Forum: Wednesday, February 24 – Electrical Job Site Safety. Register now to join the upcoming live discussion.   

If you have any questions to ask of our subject matter experts or suggestions for future Member Forums, please contact IECRM CEO Marilyn Akers Stansbury at or 303.853.4886.

Bonding in Today’s Environment and Being Prepared


What is a surety bond?

A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond, and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.

Sometimes a bond is required for a business to begin operating, and sometimes owners purchase them independently. Surety bonds are a business’s way of reassuring customers that they stand behind their promises—and if they don’t, consumers will be protected. If a business breaks its promises to its customers and they suffer financial loss, the bond can provide reimbursement. (


  • History of Bond Market from 2008 – 2012; 2012-2019; 2020 and where we are now. Important tips and best practices for you to know in today’s environment.
  • Why more bonds are being required currently from upstream financial investors on projects and what banks may be asking for with financial reporting. 
  • Overview of the types of bond documentation requirements you may need based on a Compilation (smaller projects). CPA Review, or a complete Audit (larger projects). 
  • Overview of the company financials you may need to have in order including income statements, balance sheet, budget. Why reporting and strategic discussions with your banker is relevant and important right now. 
  • When considering a bonding program, you need to be sure you have a trusted representative.  Do your research. Make sure that representative is familiar with the market.
  • Ensure you have a strong relationship with your banker, your CPA/Accountant, and your bonding agent.
  • Discussion of personal credit and business owner credit reports; how they are used in decision making and why they are important. General rule of thumb, as long as your credit is above 650 with no liens, repossessions, or other negative components, you are likely a good candidate for bonding. The better your financial status (or that of your company), the better the rates and limits will be. The biggest snag for business credit reports is unresolved taxes. Make sure your debt levels are balanced.
  • Discussion of business forecast in 2021-2022. 

Links to important resources:

Federated Insurance for Contractors

Surety Bonds for Contractors through Granite Re, Inc. 

Construction Trades Banking with Sunflower Bank


COVID-19 Updates: 


Fisher Phillips:



Additional COVID-19 Links