Working in construction has its pros and cons. One of the downsides is the danger associated with this industry. Another is the paperwork!
Working in construction means meeting obligations and keeping accurate documentation. When a construction company applies for a project, the owner asks for various documents. One of which is the Bid Bond.
In this article, we will show how a Bid Bond guarantees you’ve got a better chance of getting the job.
A Bid Bond, in layman’s terms, guarantees the project owner will be compensated if the bidder backs down. This type of bond can be activated under certain circumstances. Owners ask for it to ascertain if a construction company is capable of doing the job, and to ensure they will be compensated should something go wrong on the build.
Even for the smallest of projects, the owner wants to see proof that the company they are looking to hire is professional and experienced in the construction industry to handle their project
By way of a Bid Bond, your construction company proves that it has enough capacity to handle the project. More often than not, though, companies are unable to provide this document. They don’t have enough funds in the bank or have debt. In this case, they won’t be able to provide a Bid Bond, which puts your company at the forefront of obtaining the business.
A construction company that takes its work seriously has no time to waste playing games. There are, however, some construction businesses out there who apply for jobs without any intention of seeing the project through to completion. By placing a much smaller bid they hope to turn a huge profit.
This situation is not perfect for the owner, who runs the risk of being left with a half-completed project. By way of a Bid Bond, you prove that you’re serious about doing business the right way.
If the owner of the project feels safe working with you, it means the cooperation you receive will be excellent. The Bid Bond is a guarantee that even if something should go wrong, the owner can activate the bond and claim the funds on it.
As construction projects often involve millions of dollars, it’s perfectly normal for a guarantee of this nature to be called for. Providing a Bid Bond will give you an advantage over your competitors and assure the owner of your professionalism.
A Bid Bond proves your capacity and seriousness in the construction industry. It is your ticket to convince the project owner that you are professional, and at the same time, it’s a guarantee that you’ll be taken as a serious contender for the bid.