Washington recently passed a $1.2 trillion infrastructure bill to improve America’s bridges, roads, and energy pipelines. Construction firms around the country are intensifying their bidding to take advantage of what’s been called a “once in a generation” opportunity to modernize our aging public systems.
When set up correctly, surety bonds are a quick and straightforward way to qualify and ultimately win more bids. Bonds can be custom-fit to your specific needs. Here is a brief overview of the available options:
Types of Bonds
Bid Bonds
Guarantees that the project will be started within the contractor bid terms. They protect a project owner in the case of a contractor backing out of a job after winning a bid or failing to secure a performance bid.
Performance Bonds
Establishes that the contractor will complete the project within applicable laws and terms of the contract. These types of bonds are the most litigated. If standards are not clearly defined, a breach of contract may be triggered.
Payment Bonds
Assures that a contractor has the financial ability to compensate workers and suppliers for labor and material used in the completion of the project.
Each of the above works like a line of credit—they guarantee the project will be completed within all applicable laws and regulations. They give your customers the confidence they need to work with you and the assurance that their project will get done on time and with all bills paid. They even protect the project in the case of unforeseen circumstances like a full work stoppage or a delay in completion.
BKS Partners’ Surety Practice Group focuses on developing customized strategies that capitalize on opportunities, protect your interests and benefit your bottom line.
Contact us today to connect with an expert on our team who can help you secure a surety bond to win more business and benefit from this unique business opportunity.
Disclaimer
This material has been prepared for informational purposes only and was generated from information provided to BKS from the client and/or third-party sources. Therefore, BKS makes no warranty or representation(s) as to the accuracy or appropriateness of the data and/or the analysis herein. This information is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your tax, legal, and accounting advisors for those services.
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