Bond guide
Bonding capacity explained
Bonding capacity is the size of jobs and total bonded backlog a surety will support for your company.
Single and aggregate limits
The single limit is the largest individual contract the surety will bond. The aggregate limit caps the total uncompleted bonded work at one time. Both are reviewed at least annually.
What drives capacity
- Working capital and net worth
- Profitability and consistency of results
- Experience with similar job types and sizes
- Bank line of credit and its availability
- Quality of financial reporting
- Management depth and systems
Growing capacity
Retain earnings, avoid unnecessary debt, manage overbillings and underbillings carefully, and finish jobs profitably. Communicate with your surety contact before taking on unusual work.
Frequently asked questions
Is there a formula for bonding capacity?
Sureties use working capital and net worth as starting points, but each applies its own judgment to your experience and work type.
Does my backlog affect capacity?
Yes. Aggregate capacity covers the uncompleted portion of all bonded work.
Can capacity shrink?
Yes, after a loss year, a problem job, or weakened financials.
More bond guides
- Performance bonds for contractors
- Payment bonds
- Bid bonds
- Maintenance bonds
- Supply bonds
- Contractor license and permit bonds
- How to get bonded as a contractor
- Bonding capacity explained
- What determines performance bond cost
- Public works bond laws: the Miller Act and state statutes
- Surety prequalification checklist for contractors
Last updated October 15, 2026 · How we research