Anyone with a construction company needs to have a good relationship with a surety bonds provider. If you are looking to increase your business and win more bids, you need to invest in required bonds. The simple fact of the matter is, without the required public works payment bonds, you will not be as employable as the next company who does have the bonds. Bonds are a great way of building trust between you and the local government municipalities, and it provides the guarantees which benefit both sides.
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What is public work?
Public work projects are construction projects which the government, i.e., federal, state, and local municipalities fund. They can be the construction of a new building or a refurbishment of any type of public building or facility. Public work examples are hospitals, roads, highways, bridges, and dams.
What is a public work bond?
A public work bond is a form of surety bond. It can also be called a contract bond, a performance bond, or even a payment bond. The bond is like a form of insurance. It is a legally binding agreement that acts as a guarantee to ensure that you will complete the terms of the construction contract. This includes all stipulations. The bond, in effect, serves as a financial backup to the client in the event that the expected standard of work is not met. The agreement is based upon performance. This means that, in the beginning, you agree upon things such as timescales and the quality of materials required, for example. If upon completion, these agreements are not met, then there is a breach of contract. Therefore the bond gets paid to the customer or the government in this case. These bonds provide security, back up, and peace of mind for all involved. A public work bond or a Payment and Performance Bond for Construction is a legal requirement that any construction company needs to have in order to be considered to carry out public work.
Subcontractor Surety Bonds
If your construction firm requires the services of any subcontractors to complete the work, you may need to take out an additional subcontractor performance bond, or a subcontractor payment bond. The sub-contract arrangement is tied into the original bond. The guarantor then is able to ensure that the subcontract work is completed along with the main body of work. So, all work will be protected and honored even if the subcontractor suffers and problems and difficulties in finishing their section of the project.
What are the benefits of obtaining a public work bond?
There are many benefits in purchasing a public work bond:
- The first and most obvious is that it is a legal requirement, so without one, you will be considered to take in any public construction work.
- It makes sure that the work is completed, despite any setbacks, delays, and obstacles that may afflict the contractor or subcontractor.
- It is a guarantee to employees, i.e., laborers, suppliers, casuals, etc., that they will be paid even if the construction company falls on hard times.
- The project owner will not have any financial loss to deal with.
- It massively reduces the chance that a project will not be completed. It is, in essence, a form of trust and enhances the reputation of a company for putting their money where their mouth is, so to speak.
- Even if the lowest bidder is chosen, quality and service are not compromised as this is a way to mitigate that risk.
How to find a public work bond
At Pinnacle Surety, we have a solid reputation in working with construction companies. When it comes to providing surety bonds, we know what we are doing and in most cases, we increase the capabilities of our clients. We have been working with construction companies for over 25 years and can offer the very best in surety bonds, or public work bonds. So, if you require a failsafe bond, you need to come to us. We are expert professionals, and even if your construction company has failed to obtain a bond through other providers, we have the capabilities of obtaining the bond for your needs. We are a partner who understands that you, as an honest construction company, have a passion for your work and have a vision, goals, and ideals that need to be upheld. We share your passion.
Pinnacle Surety goes the extra mile for all the construction firms we work for. You are all individual, and we will treat you as such. That is why we can offer you a service that is molded to your individual needs. We will be able to provide you with the fully comprehensive and legally binding bonds you need, even if you have been turned down elsewhere. You will benefit from, not only the bonds that you require but all the additional benefits that your business gains from having binds. For example, by getting a bond with us, you’ll qualify to bid on bigger projects.
We will provide you with an expert who will get on with the job and secure all the bonds you need, construction bonds, payment bonds, etc. As a construction firm, you are going to be busy out on the job, so you can rest assured with us that we will simplify the process and offer you an efficient, seamless way to get the bonds you require. Everything else will be done by us. Fully comprehensive bond cover is what we offer, and you will not find it easier with anyone else. We also have a deep understanding of all state laws, so regardless of where you are from, you can rely on us.
We have a long-standing reputation to uphold at Pinnacle Surety, so when you purchase bonds with us, we ensure that our public work bond definitely protects you and your interests. Your work is our work. You do not need to worry about any unforeseen circumstances, as we will have you covered.