Tips To Improve Your Chances Of Qualifying For A Construction Surety Bond
The getting of the certificate of bonded companies is a step which will require on you who is seeking their company to be bonded to have a knowledge of the required documents for the qualifications. In as much as it is such an important step, it is certainly is not your only step to mind however important. There are other important factors that you will need to give consideration as well. Regardless of the documentation you will have, it will mean little if your company does not have the relevant experience and attributes to qualify for documentation. It will be first mandatory upon you to have a financial house that has been put in the right shape and order. Get the right collateral to confirm that your funds are right under your control.
The company applying for the construction surety bonds should also provide enough evidence to show that they have with them the required levels of liquidity all dependent on the level of debt they have and the cash reserves they have to run the business. 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 application for construction bonds will call on you to provide a list of references like that from customers dealt with in the past though it should ideally go beyond this particular sphere. The suppliers and other industry members will often highlight certain characteristics and qualities about your company which will be of great value to the bonding agencies in analyzing your particular company in this industry.
It is important that thoughout the process, you get to work with a surety professional. The surety professionals will be helpful to you in so far as the details of explanations for the surety application goes and with the tips they will give you can give the application for these a far much better shot.
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.