Why Is My Surety Company Asking for a Verification of Project Financing on Commercial Projects?

With government sector public projects, you and your bonding company know the money is there to fund the work because the funds have been earmarked for the project by federal, state, or local government. But how do you know there are adequate funds to complete commercial projects?

Contractors can approach the owner and ask for verification of financing, either from their bank or from their own capital reserves. You can put the onus on the surety company, letting the owner know that they need confirmation of financing to underwrite the project.