Surety bonds are one of the best tools businesses have for protecting their clients and safeguarding the outcome of projects. They can help to encourage your would-be clients to take on a project with you. They can be one of the best ways to convince lenders as well as government agencies to allow a project to go forward. 

For these reasons, it is always best to secure a bond if you are working on any type of construction project. The benefits are many, while costs tend to be low.

Required Surety Bonds

In some situations, contractors may have specific requirements for obtaining these bonds. You may have to secure them or plan to secure them before bidding on a contract. You may need them in place before a project can get underway. 

Today, it is more common than ever for bonds to be a required aspect of projects. This includes large-scale projects such as building new buildings and even smaller projects such as concrete work and landscaping.

If required for the project, contractors should not delay in obtaining these bonds.

Presenting the Value

Can you tell your customers or clients that you hold this bond? If not, that could deter them from working with you. Today’s consumer knows the importance of protecting their investment. They also likely know the importance of bonds themselves.

• Bonds ensure customers will get the work done according to the terms listed in the contract.
• Surety bonds for construction projects help cut risks that can occur in long-term delays.
• They help ensure that the bidder and any subcontractors are going to perform to do their best work.

In many ways, contractors need to obtain these bonds. They should consider it just as important and as valuable as purchasing business insurance. Keep in mind that bonds are project specific. And, they tend to be inexpensive. 

Most of the time, surety bonds are a benefit to contractors and construction companies. They generally provide outstanding protections to your business, your reputation, and your customers.

Most of the time, you do not have to tap into them. But if there is a problem, they provide coverage your clients and contract holders will need.