To a lot of companies that are growing, new bond processes might seem like ‘just paperwork,’ but in reality, part of the reason that these kinds of financial backing are so important is that they help to create those final results that matter.
For obligees, performance bonds are a guarantee that work will be done to specifications, and done on a specific time frame. There’s a reason that big, important infrastructure projects require specific types of bonds, and why you need capital reserves for change orders. It’s because most times, not getting something done right can be worse than not doing it at all.
Take the example of a school renovation. The school district starts the process, gets contractors on board, and waits for the project to be finished. But they need it finished by the next school year. Otherwise, the kids will show up, but the classrooms won’t. And that’s a serious problem for everybody. The people that hired the contractors will have to scramble to source last-minute solutions, like having trailers trucked in. The contractors? They’re going to suffer, too. The same goes for any kind of public project, from hospitals to residential common spaces.
There are also a lot of things that can go wrong with a project. With multiple contractors in the mix, any kind of delay has a domino effect. Say the lead plumber has a heart attack, or the team just messes up the seals, and the whole thing’s leaking. Meanwhile, the next contractor is waiting to put a sprinkler system in. The clock is ticking. Things get out of control fast.
That’s part of the reason why surety bonds are such great tools for assuring investors or planners. Like Jerry Maguire, they want contractors to “show me the money!” when it comes to guaranteeing timely, correct results. And that’s why some bond situations might throw somebody for a loop: for example, suppose a lead contractor suddenly wants a bond from each of the four subcontractors involved. In an increasingly uncertain financial environment, there is a growing desire for financial guarantees to serve as an additional backstop to make sure that a subcontractor’s best intentions come to fruition.
You go to your primary physician for a physical or an antibiotic when you are sick. However, if you are diagnosed with a brain tumor, you would seek out a knowledgeable experienced brain surgeon to perform the surgery with the hopes of the best outcome. Bonding works the same way! Your general insurance agent is the ‘go to’ expert for your liability insurance because most of their clients use that policy. But maybe 1 in 50 of their clients requires a contractor’s bond, so their expertise is limited in that specialty field. Unique Surety is a Surety Bond Specialist. 100% of our clients need bonds and that is all that we work on everyday, each week, all year long. Unique Surety has more than 10 surety carriers who each specialize in bid, performance, and payment bonds. When it comes to surety bonding, Unique Surety is the ‘go to’ technology bond specialist in their field.
When a business needs to get good bond backing, it’s best to go to a specialized source that deals in bonds every day. Let Unique Surety take care of getting the right steps in place to show your credit worthiness, competency and financial aptitude. We know how important it is to get your bonding in place and not miss a deadline. We do it all the time. It is our only job. We work hard to make sure that when you’re asked, you can quickly obtain what you need when you need it; to deliver to everyone the comfort of peace of mind.
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