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Why do contractors need surety bonds to bid on projects?
Is getting bonded the same as buying insurance?
Why is a bonding relationship important for contractors?
How can contractors increase their bonding capacity?
How Franjo Construction’s Surety Partnership Supported Remarkable Growth
When contractors want to pursue larger, more complex projects, their growth is often limited by their bonding capacity. Frank and Joe Leonello, founders of Franjo Construction, learned this difficult lesson early on in their journey.
After growing up and working alongside their father in the residential construction industry, the brothers set goals of their own. “We decided that our dream was to have our own commercial general contracting business,” explained Frank.
While Franjo Construction bids on and wins $100 million-plus projects today, its story began with the same bonding bottlenecks many new contractors face. Read on to learn how the right surety partnership transformed their dream into a reality, despite early setbacks.
Franjo Construction’s Dream to Build Something Bigger
The idea for Franjo Construction came to Frank and Joe in the 1980s. “It started when my brother and I both worked for my dad,” said Joe. “We always wanted to have our own construction business and run it together.”
The brothers formally established Franjo Construction in 1997. During the first few years, the company’s growth was slow. Joe and Frank took on small construction projects while continuing to work their full-time jobs.
Despite their modest momentum, their passion propelled them forward. “We just loved what we did and worked hard,” Joe said. Eventually, both brothers decided to fully commit to Franjo Construction, leaving their stable jobs behind. Not long after, they encountered their first major obstacle.
The Surety Bonding Roadblock
As the Leonello brothers pursued public commercial work, they quickly discovered that ambition and hard work weren’t enough to win bids. They needed surety bonds to qualify for their desired jobs. However, they knew very little about how to get bonded for construction projects at the time.
“The word ‘bond’ was something we had never heard before,” Joe admitted. Like many new contractors, Frank and Joe assumed getting bonded would be an easy process. “We thought it would be as simple as picking up the phone and saying, ‘Hey, we need a bond,’” Frank explained. “But it wasn’t that easy.”
After submitting their first surety bond application, the brothers were promptly denied. “With no resume or experience, it was really difficult for us to obtain work,” Joe said. This setback could have shaken their confidence and derailed their momentum, but instead, it put them on a path to finding a surety partner who would ultimately shape their future for long-term success.
Read More: The Essential Role of Surety Bonds in Keeping Your Contracting Business Compliant
Looking Beyond the Balance Sheet: The BOSS Bonds Approach
The Leonello brothers called their insurance company to find out how they could obtain a surety bond. Their insurer introduced them to Rich Taylor, BOSS Bonds’ current Vice President of Contract Surety, who immediately saw something in Frank and Joe that other surety providers didn’t.
“The brothers had great character,” Rich said. “Their capital was almost nonexistent, but I’d rather bond somebody with strong character than somebody with a strong balance sheet.” Instead of rejecting them outright, he took the time to:
- Understand their growth goals.
- Evaluate their current financial standing and potential.
- Outline the steps they could take to qualify, including getting their father to co-sign on their first bond.
“Rich gave us an outline of what we needed to do in order to obtain a bond,” explained Joe. “He stuck with us and helped us figure it out.” This hands-on support set Rich apart from the other sureties they had approached.
“Rich stood out because he could see that we would succeed,” Frank confirmed. “He believed in our character.” Rich’s willingness to give the Leonello brothers a chance when no one else would is what ultimately helped Franjo Construction secure its first bond.
The First Breakthrough: Peters Township Bus Garage
Franjo Construction’s first bonded project was a public bus garage project in Peters Township. At the time, it was a major milestone. “It felt enormous,” Joe said. However, that project was just the beginning.
“Once we received that first bond, it catapulted us into other projects,” Joe explained. That initial opportunity created powerful momentum. “If we didn’t get that first bond, we wouldn’t be where we are today.” Each subsequent project strengthened their credibility, experience, and bonding capacity.
“Thanks to that bond, we were awarded the Peters Township job,” Frank added. “And 25 years later, we’re still working with that same architect.” This long-term relationship is a testament to how one opportunity, backed by the right surety support, can shape a new company’s entire trajectory.
Read More: 10 Tips for Increasing Your Bonding Capacity
Why Bonding Is More Than a Bidding Requirement
Many contractors think of bonding as a box to check before bidding on certain jobs. However, Frank and Joe learned that it’s much more than that. By working with the right surety partner, a strong bonding relationship can help contractors take strategic steps to achieve their most ambitious growth goals.
“BOSS Bonds is the buffer between us and the underwriter,” Joe explained. “Rich knows how to speak their language.” With BOSS Bonds’ backing, Franjo Construction gradually learned how to:
- Accurately evaluate their risk
- Make strategic improvements to their business model
- Present their business in the right way to underwriters
- Steadily increase their bonding capacity over time
The key component to their successful partnership? Transparency. “My advice to anybody out there would be to be honest, commit to that company, build a good relationship with them, and tell them everything that they need to know,” Joe said. “Be a total open book.”
Rich echoed that sentiment from the surety side: “My relationship with Franjo is characterized by strong communication. They can call me anytime, and they can be very transparent with me. Transparency and communication really are the key, and we have that in spades.”
From Small Projects to Major Developments
Over the past two decades, Franjo Construction has grown significantly. “In the early years, we were bidding on projects that were $500,000 to $2 million,” Joe said. “Fast forward 20 years, and we’re bidding on projects that are $100 million plus.” This remarkable progress is due to Franjo Construction’s consistent execution, strong partnerships, and willingness to scale.
While Rich always believed in Franjo Construction, he’s still amazed by their rapid growth. “To see where Franjo is today—it’s been an amazing journey. After building their business from scratch, they’ve achieved a level of success that’s typically associated with second- and third-generation contractors.”
A Partnership Built on Trust
After reflecting on their nearly 30 years in the commercial construction industry, both Leonello brothers believe their surety partnership played a pivotal role in their success. “Our bonding partnership is essentially our lifeblood,” Frank said. “Next to our bank, it’s one of the two most important things we have.”
For this reason, Franjo Construction continues to work closely with BOSS Bonds today. “We’ve been approached by many different bonding agents over the years,” Joe revealed. “But we’ve remained loyal because working with BOSS Bonds has been a seamless experience."
Read More: 9 Questions Contractors Should Ask Their Surety Bond Agency
Franjo Construction’s Advice for the Next Generation of Contractors
As the Leonello brothers look ahead, they want to instill their values of hard work, transparency, and strong partnerships into Franjo Construction’s next generation of leadership. One of Frank’s top pieces of advice for new contractors is: “Create a relationship with a bonding company that allows you to grow, and lean on their expertise.”
Joe offered a similar perspective, emphasizing the importance of transparency and commitment. “Be honest. Commit to your bond partner. Give them the information they need so they can help you get what you need in the future."
If you’re a contractor who wants to follow in Franjo Construction’s footsteps, the main takeaway from their story is simple: success isn’t just about winning bids—it’s about building the right relationships.
Read More: The Importance of Prequalification in Public and Private Sector Construction Projects
Let BOSS Bonds Be Part of Your Success Story
At BOSS Bonds, we believe in the power of long-term construction surety partnerships. When you partner with our team, we’ll work outside of the box to get you bonded and develop a strategic roadmap to help you achieve your growth goals.
With our support, transparency, and expert guidance, we can help you secure the bonding capacity you need so you can grow your business with confidence.
Ready to pursue bigger construction opportunities? Book a free bid readiness prequalification consultation with BOSS Bonds today!
