In order to help our vendors over the challenges that can be associated with Bonding, the Small & Minority Business Resources (SMBR) Department has added a Bonding Financial Consultant to our staff.

The Bonding Consultant meets one-on-one with business owners to educate and assist them with their bonding needs.  

Bonding Basics

Most government-funded construction projects require Surety Bonding meaning the prime contractor must be bonded for the amount of the project. Surety Bonding protects the government agency that is building the project by ensuring that the project is completed per contract terms. It also protects the subcontractors and suppliers who are working on the project. There are three basic types of surety bonds: the bid bond, payment and performance bonds.

Bonding Consulting Services

Obtaining and growing bonding capacity is critical for a construction company.  Many times a company will wait too late to obtain the required bonding and miss out on opportunities to participate as a contractor on city projects, not knowing they can get preapproved for bonding at any time.  

First Time Bonding

There is a program that most bonding agents use called Fast Track that will get you preapproved for bonding capacity up to $250,000 based on your personal credit score.   Credit scores need to be 670+ for all owners and their spouses.   If your credit score is not at this level or you are not sure what your score is, call us anyway and we will show you how to pull down your credit report and get you on track to fixing your credit so that you can apply for bonding.

Growing Existing Bonding

If you have some bonding capacity now or have had a bond in the past, then we can help you to grow this capacity.   We will work with you, your bonding agent, banker and CPA to try and get your bonding line increased to that next level you need to bid on bigger projects.

Eligibility

To be eligible for these services companies need only be a City of Austin certified Minority-Owned Business Enterprise (MBE), Women-Owned Business Enterprise (WBE),  Disadvantaged Business Enterprise (DBE) or a Small Business Enterprise (SBE) applying for certification.  Bonding consulting services are free.

Next Steps

Contact Thomas Owens at 512.974.7600.

Past Bonding Newsletters

Bonding Overview

Understanding Bid Bonds and the Bonding Process

Overview of Credit Reporting Websites

Bonding and Financial Statements