With the current economic situations, pressing onward has been a trying effort for a lot of contractors. The caution project owners and general contractors are moving with is a difficult field to navigate and can cause delays in work, payment and strain working relationships.
Now more than ever the need for Bonding has played a significant role in many areas of the country and is becoming more and more of a normal practice. Owners wishing to protect their investments look to bonding as a way to protect themselves, unfortunately a lot of negativity is placed on bonding from all directions. No one can control the future and not a single company or person can predict the outcome of todays economic climate, so it is important to know how you can protect yourself and navigate through the weather.
Having a bonding program is essential, whether you are the project owner or the awarded contractor. Yes a bond is design to prevent any potential issues of performance and payments, but in no way does it make a negative outlook on the awarded contractor. If anything having a program will actually bolster your ability to perform with credibility as well as profitability. Many times an owner may even award a project based on the experience and outlook of a contractor, you may look better in their eyes than another un-bondable company even though the bids are fairly close and a bond may not even be needed.
Overall having a bond program is just one more tool in your belt as an Owner, Contractor or Sub-contractor. Talk to a professional about getting a program together and ensure you are ready in the event a bond is requested or a job comes down to overall company stability.
For more information on bonding: Adam@jaknappagency.com
or visit: http://www.jaknapp.com/
- Adam Griggs
Program Manager/Risk Manager
JA KNAPP AGENCY
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