Bid and contract bonds are more difficult for a contractor to obtain than any other type of bond. Because your bid bond guarantees that a contract bond will be provided, the surety company will expect to supply the contract bond if the job is awarded to you. Therefore, you should know what the bonding company's requirements are going to be. One such company recently stipulated that in order to get a bond, a contractor must possess " the character, experience, equipment and financial resources" necessary to complete the contract. Each of these essentials should be carefully considered: character, the company wants to be certain that your top management is morally sound and that they are reputable businessmen with acknowledge standing in the community. Experience, the surety will ask what other contracts your firm has completed, and the number of years you have been performing the work for which you need the bond. Equipment, you must possesses the necessary tools to complete the contract. And financial resources, the surety company will insist on having a current financial statement, prepared by a certified public accountant, showing a good net worth. Several other surety bonds many be required by contractors. Labor and materials bonds guarantee payment for labor and any material used in the course of construction, and that union welfare and pension fund payments will be made.