For construction companies, it is important to have a surety broker representing you with the various insurance carriers that write bonds.
Most companies can get more bonding capacity by working with someone who knows the business very well. Knowledgeable surety brokers and surety company representatives allow you to learn valuable information about their industry, while maximizing your bonding capacity. This is especially important if your company is heavily dependent on bonds.
Your surety bond broker should also be facilitating personal relationships between the construction company and the bonding company representatives in order to build trust and friendship. Along with the success of your company, having the trust of a surety is a big factor in the process of getting your bonds approved.
Of course, the financial position, including debt levels, working capital and equity of the construction company is also very important. You must have a solid balance sheet and track record of success for the bonding capacity you want to pursue. These are the main things a bonding company will review when determining if they want to bond your firm and how much capacity they will give you.
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