Several variables determine whether a construction project ends up being successful. One of the most important factors is the subcontractor’s performance.
There’s no secret to that statement, which is why we’re seeing the number of subcontractors requiring bonds increase.
Bonds Can Increase a Subcontractor’s Chances for Success
Whether it’s the project owner, general contractor, bank, or surety company requiring the bond, the goal is the same. If you, as a subcontractor, are bonded, there’s a greater chance that your project will be successful.
Performance Bonds for Subcontractors
A performance bond guarantees that you perform your work as agreed and according to the project’s specifications.
Payment Bonds for Subcontractors
A payment bond guarantees you’ll pay any subcontractors underneath you and your suppliers as agreed to avoid mechanics liens on the job.
A mechanics lien is a legal claim against property (like a home). Subcontractors and suppliers often use mechanics liens when they don’t receive payment for remodeling or improving a property. If a property has a lien, the owner can’t obtain a clear title until it’s settled.
Subcontractor Bond Requirements Are Increasing
The requirement for subs to get bonded is increasing substantially. Even if you’ve never been asked to provide a bond to guarantee your job performance, we highly recommend considering it. The assurance these bonds offer is an extra layer of comfort for anyone doing business with you and can help set you apart from the competition.
Set Up a Subcontractor Bond Program for Free
Setting up a bond program is free. And it’s better to have one and never use it than to be caught off guard when a GC requires it.
Another perk of obtaining a bond program is getting a letter of bondability from your surety company to include in bid packages. This may open doors to new GC relationships and expand your current ones.
Contact ZipBonds to Get Started
Contact the ZipBonds team to set up your bond program today. You can always reach us by calling 888-435-4191 or emailing us at firstname.lastname@example.org. We look forward to helping you stand out from the competition and increase your chances for success on upcoming projects.