Choosing a construction bonding company is a big decision. If you’ve been in the construction business for a while, you may have used one or more surety companies in the past and are now looking to find one that can meet all of your bonding needs on an ongoing basis. Or perhaps you’ve never needed to obtain a construction bond before. In either case, here’s a helpful guide on what to look for in the best construction bonding companies for your needs.
Knowledge of the Construction Industry
Most surety companies can provide whatever type of bond you need, but there are real advantages to working with a company like Contractor Surety Group that specializes in construction bonding.
Companies that focus on construction bonding understand the industry. We can help you understand the guarantees you’ll need to provide to government agencies and private sector construction project owners as well as the challenges faced when bidding on and executing construction contracts. Our knowledgeable agents can help you understand your bonding requirements and offer competitive rates through our extensive provider network.
Surety bond companies are often licensed to operate in multiple states. This is particularly important if you bid on contracts outside of the state where your business is domiciled. So, be sure to look for a construction bonding company that is licensed in all of the states where you seek contracts and do business.
Bonding capacity refers to the maximum amount of credit a construction bonding company will provide to an individual contractor or in the aggregate to all of the contractors they serve. If the contracts you bid and work on require large bond amounts or you plan to expand into other states or other types of construction, you’ll need to make sure that you choose a company with sufficient bonding capacity.
Customer service quality is a key consideration, particularly if your bonding needs are substantial and frequent. Look for a company that is responsive to their customers’ needs and easy to work with.
Customer service is just as important, if not more so, to new contractors who may not have much experience with the bonding process. If you’re in this category, you will be best served by a company that is willing to devote time and attention to educate and assist you.
Your best evidence for determining a company’s commitment to customer service will come from reviews posted online by current and former customers. Ideally, you’ll find a company that you can build a long-term relationship with to help you grow your business.
A.M. Best Rating
A.M. Best is a rating service you can rely on for an accurate, unbiased assessment of a surety company’s financial strength and ability to meet contractual obligations. The best companies will boast an A.M. Best rating of A+ (superior) or A (excellent).
If you need a surety bond in order to bid on or work on a federally funded public works project, you’ll need to choose a bonding company that is on the Department of Treasury’s List of Approved Sureties, commonly known as the “T List.”
Count On Contractor Surety Group
Contractor Surety Group is a leading construction bonding company specializing in P&P bonds for developers/GCs including LIHTC (4% & 9% deals), market rate, HUD 221 (d) (4), and state-based programs.
Contact us today to get the bonds you need at competitive rates.