Bonding Letters
Owners and GCs often ask for a bonding letter before you bid. We issue a clean letter stating your single and aggregate capacity, signed by the surety.
A bonding letter — also called a surety letter, letter of bondability, bonding capacity letter, or proof of bonding — is a letter from a surety or its agent confirming that a contractor is bondable and stating the single-project and aggregate limits the surety supports. It's a prequalification tool, not a guarantee of any specific bond, used to satisfy owners, general contractors, and bid documents.
Because the letter reflects your underwriting, getting one in place means your account is already set up to issue bonds quickly when you win the work.
What a bonding letter includes
Owners and general contractors ask for different things, but most bonding letters cover the same ground. Some ask only for a statement that you're bondable; others want specific limits or a named project.
- Who it's addressed to — the owner, general contractor, or agency requesting it, often with the project name.
- The contractor's legal business name.
- The surety company's name, and often its A.M. Best rating and U.S. Treasury listing.
- The single-project limit and the aggregate (total work program) limit the surety supports — or a statement that it would consider bonding the named project.
- A statement that any bond is subject to the surety's normal underwriting and the contract terms at the time.
- The signature of the surety's attorney-in-fact or the bonding agent, with a date.
Sample bonding letter wording
The wording below is illustrative. Actual letters are issued on the surety's or agency's letterhead, and the requester's own required language takes priority.
“Re: [Contractor legal name] — [Project name, if applicable]. [Surety company], rated [A.M. Best rating] and listed on the U.S. Department of the Treasury's Circular 570, provides surety credit to [Contractor legal name]. We currently support single projects up to $[single limit] and an aggregate work program up to $[aggregate limit]. Any bond will be subject to our normal underwriting review of the contract terms, bond forms, and the contractor's financial condition at the time of the request. This letter does not obligate the surety to issue any bond.”
Bonding letter vs. bid bond
| Bonding letter | Bid bond | |
|---|---|---|
| What it does | States the surety's support and capacity | Guarantees you'll sign the contract and furnish P&P bonds if you win |
| Tied to a bid? | Usually not — often used for prequalification | Yes, submitted with a specific bid |
| Can the owner claim on it? | No | Yes |
| Typical cost | No premium | Usually no premium |
How to get a bonding letter
If your account is already underwritten, a letter can often be issued the same day. For a new account the surety needs to set up your file first, and your financial statements and WIP schedule are what drive both how fast that happens and the limits the letter will show.
How surety bonding capacity is calculated · Bonding capacity calculator
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A bonding letter is a capacity confirmation, not a priced bond — there's no premium for the letter itself. We issue it off your underwritten account.
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Common bonding letters
Single & aggregate letters
State your per-project and total program capacity.
Project-specific letters
Confirm willingness to bond a named project for prequalification.
Capacity increase letters
Reflect higher limits after updated financials and WIP.
More in Contract Bonds
The bonds that back construction work — bid, performance & payment, bonding letters, and credit-based Express.
Bid Bonds
Same-day bid bonds that guarantee your proposal and your ability to bond the job if you win.
Learn more →Performance & Payment Bonds
The two bonds that back the job — performance guarantees the work, payment guarantees your subs and suppliers.
Learn more →Express Bonds (Credit-Based)
Credit-based surety bonds with minimal paperwork and fast issuance — no full financial package. Up to $3,000,000 for contractors and $1.5M–$2M for developers.
Learn more →What we need to quote
Who the letter is addressed to and any required language
Latest financials and WIP schedule
The single and aggregate capacity you're targeting
Bonding Letters FAQ
What is a surety letter?
A surety letter, or bonding letter, is a letter from a surety company or its agent confirming that a contractor is bondable and stating how much bonding the surety supports — typically a single-project limit and an aggregate limit. Owners and general contractors ask for one to prequalify bidders.
Does a bonding letter cost anything?
Usually not. There's typically no premium for the letter itself. It's issued from your underwritten surety account, and premium is only charged when an actual bond is issued.
What's the difference between a bonding letter and a bid bond?
A bid bond is a legally binding guarantee submitted with a specific bid; if you win and refuse to sign the contract or furnish performance bonds, the owner can claim on it. A bonding letter is a statement of the surety's support and capacity — it doesn't guarantee anything and can't be claimed against.
Is a bonding letter a guarantee that you'll issue the bond?
No. It states the surety's general support and capacity. Each bond is still issued subject to the usual review, but a letter means your account is already underwritten.
How fast can I get one?
For an underwritten account, often same day. For a new account we need to establish the file first — financials and WIP are the gating items.
What limits will the letter show?
Your single and aggregate capacity as supported by your financials and track record. We work to position the strongest accurate numbers.
Bonding Letters by state
Requirements and obligees vary by state. Choose yours for bonding letters specifics — we write in all 50 states and D.C.
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