Every week, we meet with new contractors who want to have their bond account set up in the very first instance. This is how it usually is:
Contractor: We’d like to target projects that are bonded, but we’ve never used bonds prior to now. What’s the process?
Bond Expert: Hello! Who do I speak to?
Contractor: Hi, I’m Humphrey.
Bond Expert: Okay, Humphrey, Let’s begin by asking you a couple of questions? What is the scope and nature of the job you’re planning to do?
Scenario 1 (Pursuing contracts for up to $350,000)
Contractor: We’ve completed commercial and residential work. We are looking to pursue general construction contracts that amount to approximately $250,000.
Bond Expert: Excellent! Please describe the structure and ownership of your company.
Contractor Company: The LLC is that is owned by me as well as my friend Bogart.
Bond Expert Are you married?
Contractor A: Yes, But not to one another.
Bond Specialist: We offer a straightforward program that could be a great starting point for you. To be eligible, couples and owners must have good credit scores on their personal reports. Do the pieces look good?
Contractor The Contractor: Yes.
The Bond Expert says there are other requirements. For instance, the program can’t be used for contracts with a long-term duration or for construction with a unique or complex. It must be simple and straightforward. It’s a good thing that there are no financial statements or other forms of documentation are required. It’s a simple one-page application. If this program meets your needs, you’ll find anything better or faster!
Bond Expert: Provide me with your email address, and I’ll give you the single-page application. We’ll likely have you pre-qualified in less than 24 hours!
Scenario 2 (Pursuing contracts exceeding $350,000, or for those with poor credit scores)
Bond Expert We have an outstanding collection of bonding firms, and some even provide an exclusive bonding capacity that is not offered by other sources. We’ve found that the majority of contractors can be eligible for bonding if their bank account is set up correctly. This is where our experience (since the year 1972!) is put to use.
Contractor: What information will be required?
Bond Expert: Approval for bonding is similar to applying for the same bank loan. Similar information about your financial history and credit score is required. The relationship you have with the surety is comparable to banking, and you’ll agree to safeguard the surety against losses, similar to signing the promissory note of an institution. This is the reason why surety bonds aren’t insurance policies.
Contractor: Ok, what’s next, and what is the cost?
Bond Expert does not charge you for establishing your account! We’ll send you an email with the items required to begin. Take as much information as you can, and then send your items to us so that we can start. The process usually will take a week or so.
Conclusion
Do we have oversimplified the process? It’s not true. It’s easier than many believe for bondholders to have their accounts organized if you know-how. That’s our niche. We don’t claim to be experts in everything. However, we’re specialists in this!
Steve Golia is an experienced supplier of performance and bid bonds for contractors. For over 30 years, his expertise has been in the field of solving issues with bonds for contractors and assisting them when other providers have failed.
The specialists of Bonding Pros have the underwriting expertise and market access you require. They also provide exceptional service and easy access.
