I cannot tell you how many of my clients went out of business because they could not get bid bonds or completion bonds. I called these guys up to see if they were for real. And sure enough, they were. This is going to keep a lot of good companies in business. Just in time for the holidays!
This company can help, but you need to realize it is just like high risk car insurance. The bonds will cost more and the funds control also will cost, therefore, adding more cost to the project/bid. These additional cost makes the contractor less competitive when he walks in the door to a bid letting. Only a few that have resources/collateral can use this, and if they had the resources then they would not need the high risk. Very few will be able to go this route, but at least there is the option.
I cannot tell you how many of my clients went out of business because they could not get bid bonds or completion bonds. I called these guys up to see if they were for real. And sure enough, they were. This is going to keep a lot of good companies in business. Just in time for the holidays!
This company can help, but you need to realize it is just like high risk car insurance. The bonds will cost more and the funds control also will cost, therefore, adding more cost to the project/bid. These additional cost makes the contractor less competitive when he walks in the door to a bid letting. Only a few that have resources/collateral can use this, and if they had the resources then they would not need the high risk. Very few will be able to go this route, but at least there is the option.