# Aggregate bond limit

A term used when buying excavation.

The two numbers a surety writes: the largest job, and the whole program at once.

Federal construction contracts above one hundred fifty thousand dollars require both a performance bond and a payment bond before the award, and more than a fifth of this trade's construction work is on government projects. Bonding capacity is not a license that transfers. A surety underwrites the people who indemnify it and the [balance sheet](https://searchspheresource.com/glossary/balance-sheet) behind them, so new owners are new indemnitors and the program is rewritten around them. Ask for the single-job limit, the aggregate, and the surety's name before pricing the public [backlog](https://searchspheresource.com/glossary/backlog).

Part of: Buying an Excavation Business (https://searchspheresource.com/guides/buying-an-excavation-business)

Source: https://searchspheresource.com/guides/buying-an-excavation-business/terms/aggregate-bond-limit
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt