Parties Protected by a Miller Act Payment Bond

Surety Credit Underwriting Checklist

Financial Information

  • Audited Year-End Financial Statements (past 3–5 years)*
  • Current interim financial statement (in some cases, on a monthly or quarterly basis)
  • Personal financial statements of stockholders (privately held companies only), including financial statements or tax returns on related companies
  • List of stockholders (privately held companies only)

Line of Credit

  • Copy of current bank credit agreement
  • Amount of open credit, and average usage
  • Quarterly compliance certificates, if using a bank line of credit

Strategic Business Plan

  • Organizational chart
  • Resumes for key personnel
  • Plans for growth (including pro forma income statements, if available)
  • Business succession plan (key person life insurance, perpetuation agreement, etc.)
  • Established business partnerships (relationships with bank, subcontractors, suppliers, etc.)
  • Construction experience of key business partners (e.g., accountant, attorney, banker)
  • Company brochures (if available)

Work History

  • Prior 3 fiscal year end Work in Progress (WIP) schedules
  • Types of work performed
  • Details of largest jobs completed
  • Gross profit earned on past projects
  • References from clients, subcontractors, suppliers, and design professionals

Current Work Schedule

  • Current schedule of work in progress
  • State of completion on jobs in progress
  • Estimated completion dates
  • Ability to complete job at original margin, or greater

Current Surety Program

  • Name of current surety company & status of the relationship
  • Reason for change
  • Average annual premium
  • Willingness to provide personal indemnity
  • Details of any prior bond claims

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*Annual Reports if the company is publicly held.

Click here to download a PDF of the Surety Credit Underwriting Checklist