This helps the surety understand your current backlog. While they may be bonding only one project a contractor takes on, a non-bonded project can impact the bonded work. For those reasons understanding all the current on going contracts is very important.
The surety views backlog as “cost to complete the work”. As an example, if you have a $1,000,000 contract and $200,000 is overhead and profit then the cost to complete the work is $800,0000 and that is your backlog (if the project didn’t start).
When is it needed
- List all the projects you have a signed contract
- List the contract price
- List your estimated contract profit
- List the billings to date
- List your total costs spent on the contract to date.
- This directly impacts your bond program and approval
Things To Consider
- Only list signed contracts and not projects you are looking to bid on in the future.
- Be surety to list all the project costs to date.