Factors to Check When Choosing a Surety Bond Agency

With the construction business still in its recovery stages, competition is fierce for the few jobs that are out there. This has also increased the focus on public construction jobs. The advantage of such projects is their reliability and the seal of trustworthiness they can provide on any contractor’s CV. However, public projects almost always require a surety bond and this means looking for the right surety bond Georgia firm.

There are a thousands of firms that offer surety bonds these days. However, not all surety bonds are the same. Many of them are just insurance firms which just dabble in surety. It is important that you select the right agency for you. This could save you money and time — both extremely valuable when construction deals become tricky.

Approval and access

As mentioned above, some surety bond agencies are just offshoots of larger insurance companies that offer surety services. However, this is a specialist service and an agency which does not specialize in surety services may not have the requisite knowledge and expertise in the area. This can sometimes end up in unnecessary waste of time and money. You must also check with the US Treasury Department if the agency is licensed for bonding. Some firms that are not licensed usually broker it to another agency instead of completing the work in-house. This means increased costs and a longer turnaround time.

Choose a reputable firm

If you are in the construction business, chances are that you already know if reputable and reliable firms in the area. A firm gets a positive reputation among contractors by proving that it stands by them. A surety bond firm is more than just a banking or insurance firm. The surety is also indicative of a contractor’s trustworthiness and a good surety firms will always defend the contractor against unfair claims. A reputable surety firm will also have high acceptance among government or private companies offering construction jobs, which improves your chances of winning a bid.

Investigation

How thorough is the agency in checking your credentials? A reliable and reputable agency will make sure that every aspect of the contractor’s business is thoroughly checked, including their current liabilities, credit history, running projects and so on. The investigation is carried out to ensure the contractor is able to stick to the project. Hence, a surety bond Georgia firm that conducts a thorough investigation is always a good sign.