You can’t trust just anyone when applying for Sitework Bonds. They are extremely complex bonds that require an intimate knowledge of the construction industry, your company’s challenges, and your history. If your advisor or agent hasn’t ever applied for a Sitework Bond, you might want to look elsewhere. The consequences of receiving poor or mediocre advice can be enormous.
Let’s look at three reasons you need experienced advisors when looking for Sitework Bonds.
If there’s a sign that you’re inexperienced, a surety carrier could disapprove your application. If you’ve been receiving advice from someone who doesn’t know Sitework Bonds intimately, inexperience can be reflected in your application. Carriers want to make sure you’re trustworthy before backing you with a bond—signs of inexperience do not boost their confidence.
Many obligees – a town or a state, for example – require custom language in bond. A bond without this language can be rejected, leaving you without the job.
Not just anyone can help you with the custom language. It requires careful negotiations between the surety carrier and the bonding agent. Experienced agents can guide you through the process to ensure the correct language appears on your bond with minimal stress.
Sitework Bonds are multifaceted: they are largely dependent on you, your company and your bond agent.
An experienced advisor helps ensure that you get what your project needs. They need to know which questions to ask and what to include when applying for the bond. Inexperienced agents, on the other hand, can struggle to obtain the right information or miss important details altogether.
Since so much depends on your company’s history and experience, you will need an experienced agent that can adapt to your specific needs and convey your story to the surety carrier. If an agent approaches Sitework Bonds as a simple or standard bond, he or she probably isn’t familiar with them.
Let’s say, for example, that your history has had a “bump in the road”. Only your surety agent can explain to the carrier how your long-term strengths should outweigh any short-term past weaknesses. Would you trust just anyone with this task?
You can’t be lackadaisical with Sitework Bonds. They are far too complex and important.
When it comes to an advisor, make sure they are experienced. Make sure they understand not only the significance of the bond but also the details of your company and industry. Without an understanding of Sitework Bonds and the contracting industry in general, they can easily miss essential information or get you disapproved altogether.
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