General contractors have long been required to purchase construction bonds to qualify for federal public works projects. These days, the practice is spreading to private projects too. Now its more important than ever to qualify for a surety bond (or general contractor bond) no matter who your clients are.
How can a GC qualify for a (larger) surety bond? By keeping a strong financial position — and the documents to prove it! — will give you the best chance at a favorable general contractor bond. Surety companies are now taking a good, hard look at financial statements and financial processes to determine the risk when issuing construction bonds. What are they looking for? Strong working capital, clear job-cost accounting, regular billing practices, and a general handle on cash flow.
Will your general contracting business be up to the challenge? Are you ready to increase your bond capacity? It takes financial discipline to pull it off.
Read the infographic below (compliments of Ox Bonding) for more on how to make sure your next bond review goes smoothly… then call Fuse Financial Partners (formerly FUSE!) for help getting your accounts in order.