The Importance of Surety Bonds in Construction
Bonding is absolutely essential to the construction industry. Not only does it show that you stand behind your work, it gives peace of mind to your clients. It’s surprising how many businesses don’t understand what bonding is, or how it works. If you want your business to compete at the very highest levels of the industry, you absolutely need to be properly bonded.
But how do you know what bonding does, or find the process to get yourself covered? Explore the importance of surety bonds in construction, what benefits bonding offers your business, and how it can make you competitive in the business.
The Benefits of Bonds in Construction
Having bonds in construction isn’t just important; it’s vital to your business. Bonding shows your customers that you have undergone vigorous prequalification and will be able to fulfill your contractual obligations. It shows that you’re backed by a company who is there to offer financial backing to cover your work.
With the right bonding, the need for mechanic’s liens when payment bonds are in place is eliminated. In fact, in terms of public property, a payment bond might be the only protection you might have. Bonds can improve your opportunities for contract bids. They might also provide you access to technical, management and financial assistance you don’t otherwise have.
What are the Types of Bonds?
There are a number of specific types of bonds, but in general, they fall into three major categories. The first of these are bid bonds, which cover you when you’re making a contract bid, and assure that you’re going to enter into the contract in good faith and complete your obligations as well as providing the other two types of bonds.
The second category of bond is the performance bond, which covers your work should you fail to complete your obligations under contract. It’s a form of insurance that will pay the property owner to ensure they don’t suffer financial loss.
Finally, the payment bond is assurance that you have the funding in place and the means and intention to fully pay your subcontractors, suppliers and laborers on your project. Each of these kinds of bonds serves not only as insurance but as assurance that you can fulfill your obligations.
Bonds and Surety
Bonds are an important form of prequalification for your job. They give your clients peace of mind knowing that you have a solid reputation and references, the ability and willingness to meet all your obligations, the experience to match your requirements, the equipment to get the job done, and the funds to support your work. It’s assurance that you have a solid bank relationship, and outstanding credit history.
Surety Bonds in Las Vegas
If you’re in Las Vegas and need the best in surety bonds in construction, whether you’re a large or a small business, Harris Insurance is here to help. Let us provide financial surety for your next job as well as peace of mind for both you and your clients. We can guide you through the process, and help to reduce the stress and frustration. Give us a call to find out how we can help you today!