Completing A Project While Securing Your Interests - Advantages Of Surety Bonds
Posted on: 11 May 2017
Whether you're looking to expand or remodel your home or simply have a small outdoor project completed, turning to a private contractor can be a great way to get professional hands on the job. Unfortunately, if you don't have experience working with a particular firm, you may experience some anxiety over a project being properly completed or financial terms being fulfilled.
If you're plagued by these doubts but want to maintain a solid relationship with your contractor, you should consider the use of a surety bond. Below, you'll find a guide to some of the advantages of establishing contractor bonds, providing you with the knowledge and security you need to complete your project with confidence.
Contract Clarity
One of the primary sources of friction between a private contractor and the hiring party can be the handling of additional costs. Even though a contract may spell out precisely how overruns are to be handled, there may still be some uncertainty or some attempts by either party to displace the blame.
The financial security provided by a surety bond removes this concern by placing financial clarity firmly in the hands of the bond itself. Since each party has a financial guarantee in the event the relationship breaks down, you can remove stress from the equation and move forward amicably.
Government Support
Contract enforcement can be a struggle if you don't have substantial assets or the power of a huge legal department behind you. In the event of a dispute, it can be comforting to know that you'll have sufficient protections to enforce the terms of an agreement that may have been difficult to form in the first place.
Most surety bonds are licensed and maintained by the Small Business Administration. The involvement of the federal government should allow you to not only feel confident in the veracity of the bond, but should also help guarantee that any and all terms can be enforced.
Trust Building
The first time you use a contractor, it's easy for each party to be wary of the other. While a bond can enforce trust from the beginning of a relationship, it can also form the foundation for solid growth. By successfully negotiating and executing a surety bond, you can have confidence that your contractor will complete your project with professionalism, and the contractor can know that you're a client who wants to handle things truthfully and in the open. This can set up a great future relationship that manifests with other successful projects.
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