If you own or operate a construction business, you’re probably familiar with commercial bonding. Most large public projects (usually those over $50,000 in value) require the contractor to be “bonded.”
But, what if you’ve never been bonded? What if you’re relatively new to the construction industry? Is it even possible to obtain a bond to bid on your next project?
In this article, we’ll briefly discuss commercial bonding and how Kincaid Insurance Group can help.
What is a Commercial Bond?
A bond is an indemnity that helps an entity, such as a local municipality, protect its interests in the event of incomplete and unsatisfactory work provided by a contractor. A bond is an agreement between the contracting entity, the contractor, and a surety company. The bond would make the contracting entity whole if the contractor fails to hold up its end of the deal. Performance bonds, warranty bonds, and environmental bonds are types of commercial bonds.
The “three C’s” of bonding are used by surety companies when deciding to grant bonds to contractors. The three C’s are: capacity, cash flow, and character.
Dispelling Bonding Misconceptions
Some contractors wrongly assume that they are unable to obtain bonds. As with many things in business, it’s not so much what you know—but who you know. At Kincaid Insurance Group, we help contractors obtain commercial bonds so that they can confidently bid on (and hopefully win) construction projects.
Here are just a few reasons to work with Kincaid Insurance for your next bond:
We’re fast: We can usually turn around most bonds within one business day.
We’re experienced: We’ve helped many first-time and experienced contractors obtain commercial bonds.
We’re flexible: We can also help with unique bonding needs, such as environmental bonds.
Need a Bond? Take These Steps
If you’re in need of a performance bond, give us a call to start a conversation. We’ll provide you with an application to kick things off. Our goal is to turn around most bonds within one business day.