Overview Of Site Improvement Bonds
As a contractor, you probably already know that there is much more to completing a job than just doing the work. First, you must bid on the job and there is a chance that you might not even get hired. You must also fill out lots of paperwork and ensure that you have the proper license. However, if you do get hired to do the work, it is important that you take the proper precautions to ensure that your work is covered and protected. This is where site improvement bonds come in handy. Below, you will learn more information about site improvement bonds.
What Are Site Improvement Bonds
A site improvement bond is basically a form of insurance that a contractor must acquire when making improvements to an existing building. For instance, if your company is hired to install a new roof on an existing building, you will be required to purchase a site improvement bond from a bonding insurance company. This bond will guarantee that the job is completed as originally agreed upon.
In the event of any illegal activity or fraud by the contractor, the site improvement bond will reimburse the building owner. A site improvement bond is almost the same thing as a subdivision bond, except for the fact that subdivision bonds cover new buildings rather existing bonds.
The Cost Of Site Improvement Bonds
Site improvement bonds can vary in price. There are several different factors that can determine what this type of bond might cost the contractor. The size of the job and the terms that are agreed upon can affect the finalized cost of the bond. As a contractor, you should also know that your credit score and other finical credentials could play a role in how much the bond will cost. Even the amount of time that you have owned your business can affect the cost of the bond.
In order to ensure that you’re able to acquire the lowest cost possible, it is absolutely essential to maintain a reputable business reputation and an immaculate credit score.
How To Apply For Site Improvement Bonds
As a contractor, it is very likely that you will find yourself in need of a site security bond. In order to apply for a site improvement bond, which is sometimes accompanied by a bid bond or a performance bond, you must first find a good reliable surety company like ConstructionBond. Your best bet is to do this online. Once you find the company, you will be required to fill out an application. If your application is accepted you will be required to pay a fee. Once the fee is covered, you will receive the bond in the mail, within the matter of a few days.
You should know that the time for this whole process could vary, because your company will have to undergo a credit check and screening process, before you are even approved to acquire the bond. Time frames for issuing a bond varies as certain securities require granular underwriting which are time consuming. We always recommend our contractors to thoroughly read and understand all by types of construction bonds (You can do that by going here – https://www.constructionbond.ca/types-of-bonds/bonds-for-contractors/) before making a commitment to a surety company. You must know this, once a bond has been issued by the surety, there are no refunds.
Getting Covered Now
Remember that it is absolutely pertinent to obtain the required site improvement bonds, before you begin carrying out any work! The bond will protect you, as well as the client! When you’re ready to begin, you should start filling out applications and obtaining quotes right away.
Other Types of Construction/Contract Bonds we provide:
- Construction Bid Bonds – Financial Security for Contract Bidding.
- Maintenance Bonds – Provides protection for a lengthier period of time.
- Performance Bonds – Guarantee of work being completed.
- Payment Bonds – Provides protection for payment workers.
- Subdivision Bonds – A bond used for subdivison development.
- Labour And Material Bonds – Helps cover Labour and Materials Cost.
- Surety’s Consent or Agreement to Bond – Agreement with the Bond Issuer.
- Bad Credit – Bonding for Businesses with poor credit.
- Fiduciary Bonds – Similar to Insurance (Protects your business)