Before being hired for a project, contractors are usually required to secure a surety bond.There are many factors that affect whether or not a surety company will issue a bond to a contractor. Some of these factors include, but are not limited to, credit history, the amount of risk for the project, the contractor’s experience, and more.
There are many things that can affect the completion of a project: issues with a sub-contractor or suppliers, even the weather can unexpectedly change the plans. Therefore, it is important to have a surety bond in place. You can always speak with a surety company and ask them about the contingencies and how it can help you as a contractor without harming your interests.
Benefits of securing a surety bond
- First and foremost, a surety bond is required to secure work for projects
- The bond gives project owners financial protection against the contractors if they go not adhere to their obligations within the contract
- You can always negotiate a reasonablesurety plan if you are in good standing with the surety company
