Bonding Capacity · Surety · Working Capital · Aggregate Bonded Work · $1M–$12M
Bonding Capacity · Surety · Aggregate Bonded Work · Working Capital · Construction Bonding
Construction Bonding
Capacity Explained.
Bonding capacity controls growth for most commercial subcontractors more than any other single financial factor. When you hit the bonding wall — when your surety won't approve more aggregate bonded work — it happens at exactly the moment opportunity is greatest. Understanding how sureties size bonding programs is the first step to managing your capacity proactively.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You Hit the Bonding Wall and Don't Know Why
Revenue is growing, jobs are running well, and your surety tells you they can't increase your aggregate bonded work limit. The reason is almost never about the quality of your work — it's about financial ratios. Working capital, equity position, current ratio, and WIP presentation determine bonding capacity. Most contractors don't understand which ratio is constraining them until after they've been turned down.
02
You're Managing Bonding Reactively
Most subcontractors only think about bonding when they need it for a specific job. By then, if the ratios don't support the program, it's too late — the financial improvements required take months to materialize. Bonding capacity needs to be managed proactively, not reactively.
03
Tax Planning and Bonding Goals Conflict
Your CPA wants to minimize taxable income — which often means reducing equity and retained earnings through distributions and aggressive deductions. Your surety wants to see strong equity, working capital, and growing retained earnings. These goals directly conflict. Without someone managing both simultaneously, one always undermines the other.
How SPM Fixes It
How Sureties Size Bonding Programs
Most sureties use working capital as the primary driver — typically allowing $10–$15 of aggregate bonded work per $1 of working capital. A contractor with $400K of working capital typically supports $4M–$6M in aggregate bonded work. To grow the program, working capital has to grow. Secondary factors: equity position (total assets minus total liabilities), current ratio (target above 1.5), debt-to-equity ratio, and WIP schedule quality and accuracy.
How to Increase Bonding Capacity
Retain earnings — reduce distributions and keep profit in the business to build equity and working capital. Accelerate AR collection — faster collections increase cash and current assets, improving working capital. Reduce current liabilities — pay down short-term debt and manage AP timing. Produce accurate WIP — a WIP schedule that sureties trust is worth more than one that's technically correct but presented poorly. SPM manages all four for Executive clients.
Bonding-Ready Financial Presentation Year-Round
SPM manages your financial ratios with bonding capacity in mind every month — not just when you're applying for a larger program. When your surety asks for financials, they're current, formatted correctly, and accompanied by a WIP schedule that reconciles to your balance sheet. Executive clients also get strategic guidance on the working capital and equity trajectory needed to support their bonding program goals.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
What is the difference between single job limit and aggregate bonded work limit?
Single job limit is the maximum contract value your surety will bond for a single project. Aggregate bonded work limit is the maximum total value of all bonded contracts outstanding simultaneously. Both are set by your surety based on your financial profile. Growing contractors typically hit the aggregate limit first — because multiple jobs running simultaneously consume the aggregate capacity faster than any single job size constraint.
Do I need reviewed or audited financials for bonding?
At $1M–$12M, most sureties work with internally prepared or compiled financials. As programs grow — typically above $5M–$10M in aggregate bonded work — sureties often require reviewed financials from a CPA. Audited financials are typically required for very large programs or when the contractor's financial profile has concerns. SPM has vetted CPA partners for reviewed financials when your bonding program requires them.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.