BONDING 102 – I’VE NEVER BEEN BONDED – WHERE DO I START?
I know what you’re thinking … “I’ve run my construction company for several years now and I’d like to expand into doing bonded work”. Or … “I never really thought about pursuing bonded work but I was just offered a job that requires a bond”. “Where do I begin?”
The good news for contractors who are looking for their first bonded job is The Bond Agency has a 25 year history of helping contractors get their first bond. You’ve come to the right place.
SMALL CONTRACTS: If you have a small contract, under $400,000, there are numerous bonding companies offering easy access, small bond, credit based programs for companies like yours for these jobs. (i.e. Fast Track by CNA, Liberty Mutual “Quick Bond”). These programs feature short, one or two page applications and, in most circumstances require NO FINANCIAL STATEMENTS. The approval process for these small bond programs is based solely on your experience and your credit score. The application will ask for a reference on your largest prior job and the bonding company will pull your credit report. You will qualify if;
1. The bonded job you are requesting is not more than twice the size of your largest successfully completed prior job.
2. You and your business both have good credit. (Think 675 FICO on your personal score and for your business credit: no past due collections, suits liens or judgements).
If you qualify, the rate is usually 3% of the contract amount and most agents (including your new friends here at The Bond Agency) who offer these small bonds can issue the bond right from their office. These programs are a great way for a contractor to get their first bond.
To complete our Short Form, Quick Bond Application click here.
If you have problems with your credit score WE CAN STILL HELP. Just complete the application and tell us about your credit problems. We will need additional information but we have ways to get you a bond.
LARGER CONTRACTS: If you have successfully completed contracts above $400,000, are new to bonding but would like to qualify for bonds on larger contracts click here for our post on TIRED OF THE FAST TRACK? HOW TO MOVE UP TO LARGER BONDS