You can’t be an effective contractor without holding the right bonds. Yet, for many contractors, knowing which bond to get for which project, and for how much can add a whole new layer of complexity and confusion.
Here at Southwest Bond Services, we specialize in writing all types construction-related bonds. In this article, we’ll look at some of the more common types of construction bonds to help give you a better idea of how to get the right bond in your situation.
Contractor License Bond
This bond is necessary for anyone hoping to become a licensed contractor. Contractors looking to take their business to the next level should seriously consider becoming a licensed contractor. This adds a level of credibility by showing potential customers you stand behind your work.
When it comes to bidding on government projects, contractors will not even be considered for jobs unless they are licensed and bonded.
Payment and Performance Bonds
These bonds are often required when it comes to bidding on larger contracts. This type of construction bond serves as a guarantee to the project owner or developer that you will perform the agreed-upon work. Most project owners will not gamble with hiring a contractor without some kind of guarantee that the work will be performed.
Other Construction Bonds
When it comes to types of construction bonds, you’ll find there are several sub-categories that may be required, depending on the particular job. The best way to ensure you are going after the right bond is to consult with a bond writing agency like Southwest Bond Services.
Our qualified bond writers will help you navigate the process and get you the best rate possible for the bond you need to become licensed or win an individual contract.
How Bonding Helps Your Business
Bonding is one of the first things a project owner will take into account when deciding who will be awarded a bond. If you have your bonding ready to go, your bid will have a much greater chance of being accepted.
Bonding shows that you are serious about your work, professional and able to put in the work. Bonding makes you more competitive in your area of business and will help secure your reputation as a reliable and skilled contractor. This will be important in gaining a rapport with contract owners and getting business through referrals.
Want to Learn More?
If you want to learn more about securing any type of construction bond, get in touch with Southwest Bond Services today at 623-974-6453. We’ll get your bond written quickly and effectively.