How is single job limit established?
The rule of thumb for sureties is that they do not like to approve single job limits much more than two times the previously largest completed job. There are a lot of qualifications to this, however. If the company is relatively new, it may be more important to look at the prior work experience of the owner/principals before they formed the new company. Also, the financial strength of the company can be strong enough to justify a stretch beyond the two times or even three times rule. Another area is the nature of the contract in question – its duration, its apparent difficulty, its cash flow requirement. These are just a few of the many considerations that can apply.
