You have been working in construction for a while now, and you finally have your own company. So far you have only taken on small projects but it’s time to grow and get serious about your business. It’s time to invest and start growing. One of the things that you will need to invest in before you start taking on bigger projects is a contractor bond. A contractor bond will protect you as a contractor and the project owner from liabilities in the event of unethical business practices. It makes you safer and your customers feel safer. A contractor bond can protect you the contractor, the company that wants to hire you to perform services along with the agency that issues the contractor bond.
Reasons to get a contractor bond:
- The contractor bond helps protect the public by assuring that the services that you provide will cause no harm. This helps you earn the trust of prospective customers especially when it comes to commercial clients. Commercial customers are far more cautious, they don’t like being on the hook for any liabilities and this assures them you are ready and able to handle the job.
- If anyone should be harmed on the job site due to negligence then a suit can be filed against the bond to recover costs. Again this means that you take on liability rather than your clients.
- A contractor bond means that you’re serious and that you are going to maintain professional standards while doing the job. The bond makes this legally binding and you are guaranteeing that you will meet your obligations.
- The Construction industry is rife with mistrust and a certain amount of volatility. There have been outrageous cost overruns and unethical construction companies throughout the years and while you don’t fall into that category you still have to assure your customers of that fact. Both residential and commercial customers want to know that you will show up and get the job done properly at the price you quoted. Having contractor bonds in place makes them feel safer. They are assured that they have some recourse should you bolt with all their money in the middle of the night.
Invest in yourself and your business with a contractor bond. It will not only protect you from various liabilities, it will also give your clients the peace of mind that they deserve. If you want to grow and take on big commercial projects then a contractor bond is a necessary part of doing business, just like equipment or any other investment in your company.