Being a contractor is tough work. The job itself is hard on the body. Clients may skip out on payment, and if they are facing bankruptcy or decide to be a deadbeat, good luck getting your money. But that’s just hinting at only one type of bond.
What Is A Bond?
A bond is a contract between a surety and an obligated party where they are obligated to answer to the financial party. For instance, imagine bidding for a job. The project owner, say a bank, is planning on opening a new corporate office. They are on a deadline, and need the best commercial real estate firm to find space, and have it built out to order. They do not have time for firms to renege on the bidding if chosen for the project.
Requiring bidders to come to the table with a bid bond means that they will work within the contract to complete work within the schedule and within budget. This is also going to entail having a performance bond, which will ensure the work gets completed according to the contract.
If the company fails to perform the work according to scheduled milestones the liability takes into account the difference between the principal’s bid compared to that of the next lowest bidder. The bond penalty determines the surety limits. The bond for a bid is secured by the bidder to provide proof they will take the job if chosen.
Choosing a surety bond business to issue the bond is a big responsibility. Bonds Express has been around since 1967 and provides the quiet reassurance that you as a contractor can trust They have contractors in mind with payment, performance and bid bonds.
Now, the tough part for many contractors, especially if they have endured a tough time personally recently, can be securing bonds. With a long-time expert in the business like Bond Express, bonds are available for every personal credit rating.
Though, if you have at least a 700 credit score, it will be virtually painless getting the bond you need as a contractor requiring less than $350,000 for a job. The application is easy to fill out and does not require any financial information to be submitted with the bond application. These bonds in many cases are available within one day or even sooner than that.
If you have a 650 or higher personal credit score combined with a Paydex of at least 65, and require $300,000 or less you will also only be required to supply a short application without financial statements. In many cases, the bond is available within 2 days.
Even contractors who have bad credit, little to no bond experience or a low net worth are eligible for a bond through Bonds Express. If you have a project that at least carries a $100,000 price tag, or caps out at up to $10 million, you are in luck. You will be evaluated based on your contractor history not on the number of your credit score.
Consider the options for bonds as the opportunity to your next contract. Bonds Express is there for you no matter your financial or work history.