How Surety Bonds Can Help Your Business
June 28, 2017
Law

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Bond Planning

If you are trying to bid on jobs for your contracting business, and you are not allowed to bid on a few of them, it’s probably because you are not properly bonded. You need to have a surety bond to do most of the work out there, and without it, you are also going to be limited in regard to what you can bid on. For example, if you are bidding on a million-dollar job, the obligee that is offering the job needs to know that they have some form of protection. They don’t know if you will complete the job, and if you don’t, the only thing they can know is that you are bonded. This means they will be able to get their money whether you finish or not, and that’s why having these is so important. There are a few reasons why having these bonds can be very beneficial for your business and will allow you to take your company to a higher level of profitability and notoriety in the city where you operate.

Why Surety Bonds Are So Beneficial

First of all, if you are advertising your services, it is important to have two specific words. It needs to see you are licensed and it needs to see you are bonded, two words that people are always looking for. If you are licensed to do the work, that means that you have gone through all of the necessary training that lead you to getting the license to do the type of contracting work that you provide. Second, if it says you are bonded, this gives the person that is offering the job confidence knowing that they have no risk in using your company.

Where To Find The Different Companies That Offer Surety Bonds

Finding these companies will take just a few minutes of your time. If you are using your smart phone, or if you are on your laptop, you will find these businesses very quickly. These are very lucrative companies and they make a lot of money by providing these bonds for contractors. They know that this is in demand, and just like life insurance, it is something that will protect people in case of a catastrophic incident, and that’s exactly what a surety bond does for the obligee offering the different jobs.

How Long Does It Take To Have One Issued To You?

It’s probably going to take a day for them to issue it. Some of them do it much faster. There are times when contractors will go to a place that issues surety bonds because they need to have one before bidding on a job that afternoon. It is possible to have one issued that quickly, and once you have it, you will have to renew it on a regular basis. They last one year, and it is during this year that you will be able to show that you are bonded and ready to bid on any jobs up to the amount of the bond itself.

The amount of the bond will depend upon what type of jobs you want to bid on. If you want to bid on seven figure jobs, then you need to have a surety bond that’s over $1 million. If you have problems with your credit, just make sure that you show proof that you have completed other jobs recently. Soon you will have a surety bond from one of the reputable companies in your city that will help you bid on more jobs than ever before.