Monthly Archives: April 2010

Is A Surety Bond Holding You Back From Bidding Federal Work Projects?

If you are a contractor doing business as a private contractor or as a corporation, you can bid work offered by government city, state and federal agencies. If you have seen these projects and have not bid on them because they require a surety bond, that really is not so hard to get.

To get a surety bond, you need to have access to a licensed insurance agent. Your agent has list of companies that offer surety bonds to contractors with experience and with equity. As a matter of fact, you can find a surety bondsman online and get a surety bond privately if you have cash in your bank account of, at least, 3% of the contract you would like to bid on.

There are many lucrative projects being offered by federal agencies that maintain the infra structure of highways and publically owned buildings and other projects. To bid on one of these projects you must be bondable. A surety bond is easy to get if you have cash in the bank, experience in doing the work you are thinking of bidding on, and bid on projects that fit within the limits of your cash and equity assets.

Getting a surety bond for a project that you have been asked to bid on is as easy as filling out a credit card application form and much more lucrative for your future as a contractor. If your skills are more in performance rather than in bookkeeping and accounting, your personal insurance agent can help you to find a surety company willng to extend credit to you.

How Surety Bonds Can Offer Peace of Mind

Today’s economy is leaving most consumers wondering whether or not it is safe to purchase big ticket items. The fear stems from the possibility of businesses still being in business soon after purchase. There are many businesses closing their doors and this has created somewhat of a standstill in purchasing.

If you are considering making a purchase ask the owner or manager of the facility if they hold a surety bond. This will protect you if the business does fail. Should you have trouble with the product it will be taken care of but the surety bond company.

Store warranties may or may not always help when a company goes out of business so a surety bond is your protection. Companies who obtain these bonds are those who really want to do what is right by their customers allowing you the peace of mind needed when making large purchases.

Why A Surety Bond Is So Important

Surety bonds are a very important addition to any business, because they are a form of guarantee to the consumer, therefore functioning as a added layer of security and comfort they can enjoy in doing business with you. Especially in an economy like this one we are in, surety bonds add a layer of stability that few are accustomed to.

For the uninformed, surety bonds are instruments of security designed to ensure fulfillment from one part to another by a third, independent party. Functioning as aspects of credit and insurance simultaneously, they make sure that everyone is happy at the end of a contract or purchase process. Really, when you get down to brass tacks, it is more for the customer than it is for the business. The only positive aspect the business gets out of the deal is to be able to advertise that they have surety bond or bonds in place, so that the customer, again, has that extra layer of security in dealing with that particular business.

Now, if you are a customer, what do you need to know if you are looking at a purchase? What does a surety bond mean? What does it mean if a company advertises that they are “bonded”? Well, that is an important question, because many customers, and even some business owners, confuse “insured” with “bonded”. Of course, there are probably those out there for whom it is no confusion at all, but rather deception, but we are looking past that for the purposes of today. The prime difference between being insured and being bonded is the scope. You, the client, are insured against damage if anything goes wrong; a ladder falls and breaks your window, dents your car, etc… That is insurance. Bonds, and in this case surety bonds, are specifically targeted to a performance of a contractually obligated task, and it must be performed to a standard that is widely accepted in that industry.