Concrete contractors face the risk each day that the material they pour will not set properly. Sometimes entire construction projects depend on the quality of workmanship and the strength of the finished concrete.
If something goes wrong, delays can occur. The project may face cancellation. And, there tends to be a loss of revenue in these cases faced by the contractor. One way to minimize these risks is to invest in bonds.
When Should a Contractor Purchase a Surety Bond?
Bonds provide some protection to the client receiving the completed work from the contractor. This may be the construction company. It may be the property owner. A concrete contractor often works as a sub-contractor or third party on a project. Providing the lead company with a bond helps that company feel secure working with you.
Perhaps you give a client a bond. The client knows that if there is a problem with the completed work, the bond issuer will help to make repairs.
Surety bonds provide assurance to these parties that the work you do will meet their requirements. If not, the work can be redone, replaced, or compensated by the bond issuer.
Why Does a Bond Matter to You, as a Contractor?
If you are a concrete contractor, there is no way for you to ensure a project will go well until it is complete. You may have the right tools, experience and team to do the work. Your experience may include many projects just like this one. However, the property owner is still at risk if something were to go wrong.
With surety bonds, you can help alleviate these risks. Bonds can encourage a client to work with you on the project instead of another contractor.
How to Get a Bond
In this case, the concrete contractor purchases a bond from an insuring agency. The bond is specific to the project and should have a value based on the project itself.
Additionally, contractors can purchase bonds to guarantee contract terms, bid terms and other factors. Work with the property owner or project manager to ensure the proper bond is in place. In most cases, you will not need to use it. However, it is an inexpensive way to protect your business and your client’s property.
Do you want to obtain a Pleasant Hill surety bond today? Call Insurance Agent2000 at (925) 827-0510 now!