It’s not your job to worry about surety bonds. It’s ours.
You’re busy running a construction company. The last thing you need to worry about is having the proper surety support to accomplish your goals. But what is “proper” surety support?
At Guignard, proper support is defined in multiple ways. First, and foremost, you need an agency that looks out for your best interests by helping you navigate all the many risks associated with construction. Some of the ways Guignard does this is by helping confirm an owner’s ability to pay you for work performed, reviewing bond forms to make sure you aren’t taking on too much exposure, and being there for you after the bonds are written.
Second, you need an agency well-versed in surety talk. You need an agency that can effectively communicate between you and the surety, and advocate on your behalf. You need a surety agency that will let you know where you stand and what you can do to maximize your bonding.
And finally, you need a surety agency who maintains strong relationships with top-rated carriers, is aware of the market, and can adjust accordingly if needed.
The most common contract bonds are: Bid Bonds, Performance Bonds, and Payment Bonds.
Bid Bonds provide assurance to an owner that you will supply the necessary Performance and Payment bonds should you be awarded a contract. Basically, it’s the owner’s security that you will honor your bid.
Performance Bonds guarantee the performance of a contract according to the plans, specifications, and terms of the contract.
Payment Bonds guarantee your payment to subcontractors and suppliers.
The reality of every bond you provide is that you are backing the bond with company and/or personal assets via an indemnity agreement with the surety. Because of this, it’s critically important you have a strong bond agency advocating for you.
Oh, and one more thing, you need service, service, service. You should enjoy working with your bond agency.