Public construction has been looking promising in the last few years. This has seen a number of contractors moving onto this sector. However, there is one caveat; one requires surety bonding to be able to bid for these contracts. If you are considering moving into this area for the first time, then you should continue reading and discover some great tips.
Your success will be determined by the type of producer you get. All the companies in that sell Surety Bond in Los Angeles use agents and you will not relate with them directly. Therefore, you must ensure that the broker is also reliable and understand the needs of your company. If that is not possible, then it is unlikely that you will get a good deal.
The qualification of the producer is also very important. A reliable professional should be a member of a certified professional association such as the National Association of Surety Bond Producers. You can visit their website and check if they have any listing from within or around your area. Such individuals understand the surety marketplace in depth and can help you with most of your problems.
The underwriter would want to know how you run your business. This will help them understand the operations of your company so that they can know how to add value. You must be profitable and you company should have a successful track record for underwriters to take interest in you. It is also important to have good reputations with suppliers, owners, subcontractors and lenders, in addition to having solid financials.
The prequalification process is normally very thorough. Underwriters will want to get assurance that your company has a good reputation and is financially stable. In the process, you may have to provide a list of top employees, their duties, and the value they add to your company. You should also have a business plan that clearly outlines your projects, their nature, and their locations.
Fiscal year-end statements will also be prerequisite. You should backdate the record to three years from the current date. This will be able to show your financial records for the specific period. This process may require the input of a certified public accountant. The details should include payable and receivable accounts, income statements, executive and overall expenses, cash flow statement, balance sheet, and list of contracts.
You should also run a background check on the underwriter. On your part, you must also ensure that you are entering into a contract with a financially stable and reliable company. You can check for rating with the Federal Treasury List where different sureties are rated with a number grade.
Consider the total cost of the bond. The annual cost you will be paying is very important. This is the first thing most people look at, but that should not be the case. Nevertheless, it is still important to check the premium rates as well as the cost of the agent.
Consider the level of service. From the producer to the underwriting company staff, the service you be outstanding. This will ensure a healthy relationship.
Your success will be determined by the type of producer you get. All the companies in that sell Surety Bond in Los Angeles use agents and you will not relate with them directly. Therefore, you must ensure that the broker is also reliable and understand the needs of your company. If that is not possible, then it is unlikely that you will get a good deal.
The qualification of the producer is also very important. A reliable professional should be a member of a certified professional association such as the National Association of Surety Bond Producers. You can visit their website and check if they have any listing from within or around your area. Such individuals understand the surety marketplace in depth and can help you with most of your problems.
The underwriter would want to know how you run your business. This will help them understand the operations of your company so that they can know how to add value. You must be profitable and you company should have a successful track record for underwriters to take interest in you. It is also important to have good reputations with suppliers, owners, subcontractors and lenders, in addition to having solid financials.
The prequalification process is normally very thorough. Underwriters will want to get assurance that your company has a good reputation and is financially stable. In the process, you may have to provide a list of top employees, their duties, and the value they add to your company. You should also have a business plan that clearly outlines your projects, their nature, and their locations.
Fiscal year-end statements will also be prerequisite. You should backdate the record to three years from the current date. This will be able to show your financial records for the specific period. This process may require the input of a certified public accountant. The details should include payable and receivable accounts, income statements, executive and overall expenses, cash flow statement, balance sheet, and list of contracts.
You should also run a background check on the underwriter. On your part, you must also ensure that you are entering into a contract with a financially stable and reliable company. You can check for rating with the Federal Treasury List where different sureties are rated with a number grade.
Consider the total cost of the bond. The annual cost you will be paying is very important. This is the first thing most people look at, but that should not be the case. Nevertheless, it is still important to check the premium rates as well as the cost of the agent.
Consider the level of service. From the producer to the underwriting company staff, the service you be outstanding. This will ensure a healthy relationship.
About the Author:
If you need a surety bond in Los Angeles come to Contractors Insurance Solutions. We specialize in tailor made contractors insurance policies and CA contractors license bonds, and you can find us online today at http://www.cisburbank.com.
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