Commercial construction is a competitive business, and to
succeed, contractors need to find the best support and advice possible.
One way for a construction contracting company to ensure
access to critical relationships needed for sound business advice and for
qualifying for surety credit is to partner with a professional surety bond
producer, according to experts at the National Association of Surety Bond
Producers (NASBP), the Bethesda, Md.-based association for surety bond
producers.
Most contractors know that surety bonds help establish their
credentials, tangibly demonstrating their ability to perform through
performance and payment bonds. However, they may not realize the full value of
building a relationship with a bond producer.
"Bonding agents, called bond producers, guide companies
through the process of achieving surety credit. Bond producers will act in many
capacities - mentors, educators, advisors - with those construction firms to
ensure that they mature and remain successful," says Robert Shaw,
President of Skillings Shaw & Associates in Lewiston, Maine, and President
of the NASBP.
Bond producers can help contractors in a variety of ways,
such as:
- Review: Full-time, experienced bond producers are familiar
with contract review, and can help construction businesses succeed by reviewing
contracts and identifying difficult language that may place undue risk on these
businesses, creating surety underwriting concerns.
- Referrals: Bond producers know the key players in the
coatruction environment, and they can introduce contractors to the right
contacts, such as construction-oriented bankers, accountants, and attorneys, to help their businesses flourish.
- Reflecting: Sometimes you just need someone to listen. A
bond producer can give counsel and provide experienced and knowledgeable
perspective to construction businesses, as well as strategic advice for how to
expand and grow the business. But they also can be an ear for someone who needs
to talk through challenging decisions to help avert problems before they
happen.
Construction businesses need to look for producers who have
specialist expertise in surety bonding. "Not all insurance agents truly
know the needs of construction businesses and surety; in fact, most do
not," relays Shaw. "There can be a substantial difference in
knowledge and ability between an agent who has never placed a bond or who only
occasionally places a bond for a client and one who specializes in surety
full-time," says Shaw.
For more information about surety bonds and the benefits of
an ongoing relationship with a bond producer, visit https://www.nasbp.org/guaranteed/home.
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