Three Things That You Should Have When Purchasing A Performance Bond
As a contractor in the construction business, you might have found yourself in a situation in which you need to purchase a performance bond so that you can bid on a job. If this is the case, you probably want to make sure that you get approved for this bond. These are a few things that you should have when working with an insurance company to help you speed up the process.
1. Copies of Your Company's Financial Statements
First of all, the insurance company is going to want to make sure that your company is financially stable before granting a performance bond. This means that the company may want to look over your company's financial statements. To help them do so quickly, consider talking to your bookkeeper or accountant and asking him or her to print out statements for the past couple of years. This should be enough to get the insurance company started, although they might ask for additional information later.
2. Basic Information About Your Business
The insurance company is probably going to want to know a little bit of basic information about your business, such as how long you have been in the business, what your company specializes in and more. This can help the insurance company get a better idea of how stable and reliable your company is, and whether or not you will be capable of completing the project.
3. A Copy of the Proposed Contract
Before one of these companies can provide you with a performance bond for your contract, they will want to know what the contract states. The insurance company will want to know about when you're planning on placing the bid, what the project entails and when you are proposing to have the project finished. These companies often have a team of professionals who are knowledgeable about the construction industry and who can help determine if your company's contract is realistic. In some cases, you might be asked to slightly amend the contract before a performance bond can be granted, such as by extending the estimated date of completion.
Buying a performance bond is a good way to qualify for construction projects and to make potential customers feel comfortable with the idea of choosing your company. If you have these things available when working with an insurance company, you can help ensure that you get the performance bond that you need.