How to Grow and Protect Your Business with Surety Bonds

To grow your business and access more work, explore surety bonds, as they can differentiate your company and open doors to commercial and government projects.

Understand the different types of bonds (license/permit, bid, performance, payment) to ensure you're compliant and protected for various project requirements.

Utilize public resources and Freedom of Information Act requests to analyze previous bids and strategically position your company to win bonded jobs, especially during less competitive seasons.

Build the cost of bonds (typically 3% of the contract amount for new entrants) into your bids; this ensures the client, who benefits from the bond's security, ultimately covers the expense.

Focus on improving your bond capacity by maintaining good credit and strong financial records, as higher capacity reduces competition and increases profit margins on larger projects.

Pay meticulous attention to detail in all aspects of bidding and project execution for bonded work, as even small oversights can lead to disqualification or missed opportunities.

Identify your company's core strengths and niche within the construction industry, then apply that expertise to bonded projects to maximize efficiency and profitability.