If you are a new contractor, just trying to get your start, you need to have a surety bond that can cover you up to a certain amount of money. These are necessary when you are bidding on jobs where the person offering the jobs will require them. This ensures that they will get their money, even if you don’t complete the project. This is necessary when bidding on larger jobs, usually those that are six-figure or larger. To find a surety bond provider, you can search in the Yellow Pages, and also find them on the Internet.
How Do You Surety Bonds Work For Contractors?
These surety bonds can do a couple different things. First of all, they are going to show that you are serious about bidding on a project. There are companies that will only allow those that have made this investment to bid on any job that they have. Therefore, it allows you to get access to larger jobs that could be much more lucrative than the average person that is not bonded. Second, the larger the bond, the higher the bids you will be able to make on larger projects that are currently available in your city. All contractors understand that larger projects will help them make more money for the year, and since they will subcontract most of the work that will be done, this is simply more money in their pocket.
How Do You Find A Surety Bond Company?
Finding a surety bond company is actually not that hard to do. There are many listed in the phone book and online. You will want to see what others have said about the different companies that offer the surety bonds, and also look at the percentage that they charge for issuing them. You will want to save as much money as possible, but you also want to work with a business that is going to be flexible and easy to work with. If you have had some complaints before, or if your credit rating is not that great, you may find that you are getting rejected. That’s why you need to have two or three possible companies that can issue these bonds to you, one of which will do so very easily. Once you have it, your ability to bid on a multitude of different jobs in your city will become very easy, allowing you to generate more cash flow for your company.
Surety bonds are a necessity for anyone that is serious about getting as many jobs as possible for their contracting business. Once you have done this once, it will be a very simple thing to do the following year, or if you need to get another, you will know exactly what steps to take. The research that you do online, and by talking to other contractors, will lead you to the best bond issuing companies. It will allow you to take charge and bid on a multitude of different projects all at once, a few of which you will be able to obtain.