Construction Surety Bonds-The Ways You Can Improve Your Chances For Qualification
Having a knowledge of the relevant and required documentation for the application of a construction surety bond is indeed an important step for the sake of getting the company to be bonded. In spite of this, it is not the sole important step for the process of bonding though it remains very essential and crucial. Alongside this step, there are other quite other essential features and points to consider for the acquisition of the surety bonds. Your documentations and paperwork may be of little significance if you do not have the qualifying attributes and experience to custom bond. The number one consideration for the process concerning you will be the need to have your financial house put in order. Get the right collateral to confirm that your funds are right under your control.
It is also important for a well-qualified applicant for construction surety bonds to ensure that they have built a sound financial statement with low debt levels and substantial cash reserves. 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. Some of the statements include a compilation prepared by your CPA for projects falling below the 1 million dollar value, a reviewed statement from the CPA’s for those above the 1 million dollar figure and for the very large value figures, you will need to have a full audit report.
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.
It is important that thoughout the process, you get to work with a surety professional. 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.
Thus we can review the whole by surmising that you will need ahead of time your documents ready for the application of the construction surety bond, have a review of the financial statements and a bit of collateral and a good surety pro to walk you through the whole process.