Performance Bond Underwriting: Build a Work-in-Progress Schedule That Explains Capacity
Quick answer: A useful work-in-progress schedule explains both the jobs already underway and the capacity needed for the next one. Reconcile contract value, approved changes, billings, cost incurred and estimated cost to complete. A contractor license bond and a project performance bond serve different purposes; having one does not establish approval for the other.
What should each job row show?
| Field | Why it helps |
|---|---|
| Original contract and approved changes | Separates committed revenue from hoped-for work |
| Cost incurred and estimate to complete | Shows the remaining work and forecast margin |
| Billings and collections | Explains cash tied up in the project |
| Expected completion date | Shows overlapping commitments |
Explain exceptions instead of hiding them
Identify disputed changes, delayed collections, unusual margin movement and jobs with losses. Keep unapproved changes separate. Have the contractor's accountant reconcile the schedule with financial statements; inconsistent dates can make an otherwise sound submission difficult to assess.
Include the next commitment
Provide the proposed contract, bid deadline, bond forms, payment terms and expected start. Include other bids that could be awarded at the same time. Surety capacity depends on the actual business and underwriting decision, so a prior bond amount is not a guarantee for a new project.
Keep license compliance separate
CSLB publishes requirements for the contractor license bond. That regulatory bond is not project completion security for an owner. Ask for the correct bond type and obligee wording, and allow time for review before making commitments.