Contractors can obtain surety bonds through Universal 1st. Most public construction contracts and many private contracts require one, so if you’re a construction or service contractor bidding on a project, you’ll probably need a surety bond.
Each surety company has different criteria for deciding which contractors it will bond. However, all sureties evaluate the contractor and the contractor’s work to determine whether the surety will bond that contractor. Since the surety guarantees the contractor’s performance, the surety needs to decide whether the contractor has the ability and resources to perform. Any guarantor has an interest in guaranteeing only a dependable product or service, and sureties are no different.
A surety’s means of evaluating a contractor to decide if it will issue bonds is the underwriting process. This process sometimes is described as evaluating the 4 C’s-Character, Continuity, Capital, and Capacity.