The infographic titled “Things to Know about Performance Bond for Construction”, presented by NHC, is designed with intent to provide the basic knowledge and understanding of performance bond in construction projects. These types of surety bonds are usually geared towards the construction and manufacturing sectors and other forms of construction projects. A performance bond is used to insure the project owner against the risk of contractor’s failure to fulfill the contractual responsibilities to the project owner. Continue reading Infographic : An Insight into Performance Bond for Construction
Surety bonds are demanded by the local and the state government to allow businesses to carrying out various business activities. Its importance increases multifold when it comes to the construction business. The given Infographic describes the construction Contract surety bonds and it various aspects.
The purpose of construction contract Surety bond is to ensure that the project will be completed on time without any default and discrepancy. These bonds also look after the payment rights of the personnel associated with the project.
The Performance Bond, Bid Bond, Payment Bond and Maintenance Bonds are a few types of construction contract Surety bonds. When a contractor is bonded it gives a security to the project owner that the former is capable of fulfilling his duties. There are more chances of a bonded project being completed than a non-bonded one. If the contractor defaults the Surety reimburses the losses and gets the stranded project completed.
Please go through the given Infographic and know more about the construction contract Surety bonds.
This infographic is intended to provide information about Surety Bonds, how to maximize bonding capacity and what to look for in a surety agent. The infographic also talks about what factors to consider before a Surety underwrites its bonds.
It is essential for contractors to know their bonding capability as it determines the projects they are able to pursue. A surety bond company will not issue bonds to any contractor with unstable finances. Contractors need to constantly evaluate and understand their financial status including balance sheet, cash flow, bank relationships and capital. The year-end financial statements present a more precise financial standing of a company. A certified public accountant (CPA) can help any company formulate statements and tax planning. Contractors should work alongside them and with their bond agent to grow and succeed.
A Surety Bond company rigorously checks the financial background of a company to determine whether the company is stable or not. It closely examines the net worth, long-term debt , credit and contingent liabilities before issuing Surety Bonds.
It is imperative for a contractor to maintain a clean reputation in the market in order to qualify for surety from a reputable surety company.
Go through the below infographic for more information.
A surety bond is a contract. It is an agreement in which a surety company assures a project will be completed according to contract. If you are a contractor bidding for a construction project, this infographic will help you understand exactly what a surety bond is. It also shows why there is a need for surety bonds, and how they benefit contractors.
Surety bonds involve three parties: the surety company, the project owner, and the contractor. Whether a contract is for federal construction or the private sector, contractors must obtain surety bonds before bidding for a particular construction project. Contractors can obtain surety bonds from a surety company after undergoing a thorough pre-qualification process. A surety assesses the financial strength, business operations, and other qualifications before issuing a surety bond to a contractor. Surety bonds not only minimize the risk of contract default, but also increase a contractor’s project opportunities. However, there are different types of surety bonds used in the construction industry. See the below infographic to learn about the types of surety bonds your business needs.