For many contractors, taking on larger, more complex projects can feel just out of reach. You have the experience, the team, and the drive—but when it comes to securing high-value contracts, there’s one factor that often determines whether or not you qualify: bonding.

In the latest episode of Builders, Budgets & Beers, we sat down with Shayne Glass, CPA at Shrock Companies, to talk about what it really takes to get bonded, why it matters, and how strong financials are the key to unlocking bigger jobs, better partnerships, and long-term growth.

What is Bonding, and Why Does It Matter?

Construction bonds act as a financial safety net for project owners, ensuring that contractors have both the capability and financial strength to complete the job as promised. If a contractor fails to deliver, the bonding company steps in—covering the cost of completing the project.

This is why bonding is often required for public projects and many large-scale private developments. Contractors with bonding capacity signal to project owners, lenders, and subcontractors that they are financially stable, reliable, and capable of handling large contracts.

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“Bonding is what allows a contractor to hit the next level in terms of project size and scope,” Shayne explains. “Even when it’s not required, having a strong bonding capacity gives project owners and subcontractors confidence in your business.”

What Bonding Companies Look For in a Contractor

The bonding process isn’t just about signing paperwork—it’s a financial deep dive into your company’s stability, profitability, and track record.

Bonding companies evaluate contractors based on:

• Financial Health: Contractors need clean, well-documented financials. Bonding companies closely examine cash flow, balance sheets, and historical project performance.
• Job Costing & Work-in-Progress (WIP) Reports: Companies that can accurately track job costs and provide detailed WIP reports stand a much better chance of securing higher bonding limits.
• Relationship History: Bonding companies don’t just approve anyone—they look for long-term financial responsibility and a track record of completing projects successfully.

The Connection Between Strong Financials & Bigger Opportunities

A bonded contractor isn’t just backed by their work—they’re backed by financial strength. If you’re serious about scaling your business, securing higher-value projects, and building credibility in the industry, your financial management must be airtight.

As Shayne explains, many contractors mistakenly believe that having money in the bank means their business is financially healthy. But bonding companies don’t just look at cash flow—they want to see structured job costing, detailed Work-in-Progress (WIP) reports, and a consistent track record of financial responsibility. Without these key financial systems in place, contractors often struggle to qualify for larger bonds, limiting their ability to take on bigger projects.

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What bonding companies evaluate:

• Financial Strength & Stability – Bonding agencies closely examine a contractor’s balance sheet, liquidity, and historical financial performance. Cash flow is important, but it’s only part of the equation—companies need accurate, reliable financials that demonstrate profitability and controlled spending.
• Job Costing & WIP Tracking – If a contractor can’t accurately track their job costs, it raises red flags for bonding companies. They want to know that you understand your margins, can track expenses in real time, and have structured reporting in place. Without this level of detail, bonding agencies may question your ability to complete projects on budget.
• Financial Reputation & Relationships – A contractor’s history with lenders, bonding agencies, and financial institutions plays a big role in determining their bonding capacity. Contractors who demonstrate consistent financial reporting and responsible business practices are more likely to secure larger bonds over time.

Shayne shares how Shrock Companies built a strong financial foundation to increase their bonding capacity and win larger projects. By implementing clear accounting systems, detailed financial tracking, and a structured WIP process, they were able to improve credibility with bonding companies and secure more high-value contracts.

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“If you don’t have tight financials, you’re not going to get bonded at the level you need to scale,” Shayne explains. “Many contractors don’t realize that accurate job costing and financial reporting are just as critical as their construction expertise.”

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For contractors looking to grow, bonding isn’t just a requirement—it’s a gateway to bigger opportunities. With structured financial processes, accurate reporting, and a strong relationship with a bonding company, contractors can position themselves to take on more competitive, higher-value projects.

How to Build a Bond-Ready Business

For contractors who want to take the next step toward securing larger, more competitive jobs, Shane lays out key steps to improve financial visibility and credibility with bonding companies:

• Implement Strong Job Costing & WIP Tracking – Make sure you can accurately track project expenses and profitability in real-time.
• Work with an Accounting Partner Who Understands Construction – A trusted CFO or CPA can help you structure your financials properly.
• Use Automation to Keep Financials Consistent – Tools like Adaptive ensure bills, cost codes, and job tracking are standardized—making financial reviews seamless.
• Build a Relationship with a Bonding Agency – Like any business partnership, bonding relationships require trust, transparency, and a history of financial responsibility.

“At the end of the day, your bonding capacity is a direct reflection of your financial strength,” says Shayne. “If you want to grow, you need to treat your financials with the same level of precision as your job sites.”

Level Up Your Business with Bonding

Whether you’re already bonded or just starting to explore the process, this episode offers practical insights for contractors looking to expand their business, improve financial processes, and gain access to bigger opportunities.

Listen to the full episode now and learn how to position your company for long-term growth.

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