Cash Flow

What is bonding capacity?

Definition

The maximum size of a single job and the total backlog a surety will bond for a contractor, based largely on working capital, equity, and track record.

What drives it

Working capital and net worth on CPA-prepared financials
Quality of your WIP schedule and history of fade
Experience on jobs of similar size and type
Banking relationships and available credit

Clean, timely monthly financials are one of the fastest ways to earn more capacity. Sureties reward contractors whose numbers they trust.

WIP schedule

A work-in-progress schedule lists every open job with its contract value, costs to date, estimated cost to complete, billings, and the resulting over- or underbilling.

Underbilling

Costs and estimated earnings in excess of billings: you've earned more than you've invoiced on a job. It's recorded as an asset on the balance sheet.

Guides that cover this

Cash FlowSep 8, 2026

How to Build a 13-Week Cash Flow Forecast for Construction

Profitable contractors still run out of cash. A week-by-week forecast built from pay apps, retainage, and payroll shows the crunch before it hits.

Done-for-you construction finance

Get your WIP, job costing, and close done every month.

BuildFlash runs your monthly finance on top of the software you already use, with a fractional CFO reviewing the numbers with you.

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