Surety & Fidelity Bonding Solutions

Bond Capacity Letters

A Bond Capacity Letter provides evidence of general “bondability” by a General Contractor (GC) to an Owner (or a Subcontractor to a General Contractor). Oftentimes, owners require General Contractors to provide this letter as a way to prequalify the GC for a particular job.

This letter is important because it demonstrates to the Owner that the General Contractor will most likely be able to produce Payment & Performance bonds if the owner awards the job to the contractor.


Bond capacity letters do not take the place of Payment & Performance bonds, nor do the letters provide any eventual recourse for the owner if they ultimately choose not to require Payment & Performance bonds.

Our bonding team at Hickok & Boardman can advise on and produce a bond capacity letter that meets the needs of the project, the owner, and the general contractor. If the specific job is larger or different in relation to your normal jobs, then underwriting approval will need to be secured.

Contact us to learn more on bonding or your other insurance needs!

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