Tips To Improve Your Chances Of Qualifying For A Construction Surety Bond
The getting of the certificate of bonded companies is a step which will require on you who is seeking their company to be bonded to have a knowledge of the required documents for the qualifications. In spite of this, it is not the sole important step for the process of bonding though it remains very essential and crucial. There will be other equally important and essential steps which will have to be taken for the acquisition and speedy acquisition of the construction surety bonds. Regardless of the documentation you will have, it will mean little if your company does not have the relevant experience and attributes to qualify for documentation. The number one consideration for the process concerning you will be the need to have your financial house put in order. You will need to provide the due documentation which will be a proof that your funds controls are right and you have no excesses in so far as your needs for adequate reserves to run the custom bond is threatened.
A well-qualified construction surety bonds should also provide enough proof of having built a sound financial base with adequate reserves for cash and with very low debt levels, not huge enough to impact their liquidity. Very surely, before the awards of the certificates a credit check will be performed and as such you will be advised to clear your debt and credit issues which may be appearing in your report.
As the size of the project goes, there will be need on you to provide any of the three types of financial reports before you are awarded or qualified for bonding. These financial reports to be provided are such as the reports for the projects done falling below the 1 million dollar and a reviewed statement from the CPA’s for those projects which go beyond the million dollar mark and for the extra large projects you will need a full audit report to support the call for construction bonds.
The other requirement for the application for construction surety bonds, is a sure list of references which ideally should include more than just former clients you’ve dealt with. The other players in the construction industry such as suppliers can as well provide veritable information to the bonding agencies.
You will need to bring along the input of the surety professional as you go about the application process for the construction surety. These professionals in the surety field will be quite essential with the provision of the necessary details for the qualification and application for the construction surety bonds and as such you will be in a position to make the best effort to get the application for the bonds sail through successfully.
As such the basics for the application of the construction bonds remains the same; get your docs ready ahead of time, have a review of your financial statements, then have reasonable collateral and finally ensure to work with a surety professional all through.