A surety bond provides a level of assurance to the people you plan to do work for on a project. No matter what the project is or who the client is, it is always a good idea to have these professional bonds in place to protect your client. In some situations, such as in many types of federal contracts, you'll need to have a surety bond in place before you bid on the project. However, before you make a selection, you should know more about your options.

What is a Surety Bond?

A surety bond provides a level of protection for the client you sign a contract with that you will complete the work as agreed. If you fail to do so, the surety bond will help to cover the cost to complete the project through another contract or otherwise minimize the loss your client sustained. If you default as the contractor, the surety company (the company you obtain the bond from) is obligated to meet the terms of the agreement. You can tell from this the importance and value this can present from the point of view of the client. They know their project is protected.

When Do You Need It?

Most projects you bid on will benefit from having a surety bond in place. However, if you are bidding on a federal contract for construction work that is worth more than $150,000, it will be a requirement for you to obtain a surety bond when you are bidding. It may be added later as a condition of your company being awarded the contract as well. In most cases, most state and local governments will also require this. Some private clients will also make this requirement.

The fact is, if you want to secure a contract, you need to show you can do the work to the client's satisfaction. Surety bonds can help to provide this level of protection for your clients. It's important to learn about all of the types of bonds available to you including the bid bond and payment bond and ensure that all performance bonds are in place before you apply for the project. Otherwise, you may be overlooked for another contract that has this level of protection in place.

Protect the interests of your business. Call Porter-Brandenburg Agency at (972) 234-5588 for more information on Dallas surety bonds.