As the owner of a construction firm, ensuring that you are permitted to conduct the work is essential. Contractor License Bonds are an integral feature that cannot be ignored due to the legal obligations and potential repercussions of not having this protection in place.
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If nothing else, it’s a crucial addition that will allow you to enter the cut-throat environment of trying to win contracts with a far greater sense of assurance. As you already know, you cannot build anything without the strongest foundations in place. Pinnacle Security is here to help.
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Contractor License Bonds At A Glance
The Contractor License Bond is an insurance package that protects all three parties involved within the construction project:
- The contractor
- The client
- The agency
It confirms that your work will be completed in an ethical manner and can extend to virtually every type of construction project to be finished, although different types of surety bonds may be required for varying project types.
Why Do You Need Contractor License Bonds?
When working, you must adhere to the rules and regulations of the Contractor’s License Board. They stipulate that any works amounting to over $500 can only be conducted by fully licensed contracting companies, which is why Surety Bonds for the Construction Industry are immensely important.
- Financial fines amounting to five or even six-figure sums.
- License revocation.
- Legal disputes with clients and/or competitors.
- Unable to satisfy the financial fallout of an accident.
- Breaking employment laws.
- Creating an unprofessional brand image.
Surety bonds are in place to protect the clients, but you should not ignore the fact that they will protect your business too. With support from our award winning surety bond company, staying on top of the situation should be an easy task. Let Pinnacle Security focus on keeping you legally protected while you focus on winning the next big contract.
How Does The Contractor License Bond Protect The Client?
As a business owner in any industry, appreciating things from the client’s perspective can go a long way to helping you create a more attractive proposition. Whether conducting government contract work or working on privatized jobs, understanding how your Contractor License Bond impacts their lives is immensely important.
The Contractor License Bond can manifest through a variety of individual items including; payment bonds, performance bonds, bid bonds, construction bonds, and maintenance bonds. Ultimately, their purpose is to provide the client with a sense of reassurance as they’ll now know that the works will be completed to the very highest standards without any disruptions.
A Contractor License Bond gives confirmation to the client that the money they’ve spent will go towards the project in the intended fashion. So, essentially, the insurance bond will protect them with regards to workmanship as well as materials.
Should the contractor or subcontractor be deemed to have completed works in an unethical fashion, the client will be in a position to sue and hire another contractor to complete the work in a more suitable style.
Why Use A Contractor License Bond Expert?
While it’s certainly possible to take care of this process alone, it’s always better to take the professional route. First and foremost, it will save you from encountering a very stressful scenario. However, the benefits don’t end there.
Our team can speed up the process by using our automated service checking facilities. Better still, this ensures you gain the type of Contractor License Bond that is best suited to your company and project. The act that you’ll also gain the best quotes regarding the costs is surely a worthwhile bonus too.
Knowing that the bond you take is recognized by the State is another crucial factor to consider. With so many fraudsters and unprofessional providers out there, taking on the process alone could lead to unwanted outcomes through no real fault of your own.
Finally, in the unlikely event that your coverage isn’t right, you can argue that the liability lies with the service you used. In reality, this isn’t something to worry about, but it still provides an extra sense of emotional reassurance.
The Process Of Getting A Contractor License Bond
Getting your Contractor License Bond can feel like a particularly daunting task, not least because it is something that needs to be in place before becoming an active contractor in the region. Furthermore, the fact that there are several types of bond to consider, such as home improvement bonds, it’s crucial that you follow the right process for the insurance that’s actually required.
Taking on the challenge along can be confusing and time-consuming while you’re not guaranteed to reach the best outcome either. Therefore, it’s always best to use Pinnacle as our award winning surety bond company makes the entire process easier than you ever thought possible.
Simply use our digital application process to insert your license number. From there, simply follow the simple instructions to find the most suitable plans and repayment terms on offer. Once confirmed, we’ll take care of filing the electronic Contractor License Bond.
It truly is that simple and will leave you in a position to start working on the projects you’ve recently won.
A Contractor License Bond isn’t merely something that will help you create a better first impression in business. It is a legal obligation that will protect your business and all subcontractors. As long as you stick to the guidelines, you cannot be sued for the work you’ve completed. While the insurance plan is there to protect the clients too, those personal benefits are enormous.
Use Pinnacle Security to make the process of gaining this key asset of business protection as quick and affordable as physically possible. Take the first step today by calling our experts today.