People these days are becoming extra careful when hiring contractors, and you can’t blame them. With plenty of stories going around about contractors getting involved in deceitful practices (questionable sun-contacting, intentionally delaying the project, or going over-budget and the like), consumers feel the need to take better measures to protect their interests.
As a contractor, one way to earn a client’s trust and protect all the parties involved is through a performance bond. In most states, this bond is typically required along with the contractor’s license bond.
A performance bond is a surety bond that serves as a guarantee that the contractor will finish the project according to the terms of the contract. In case the contractor fails to complete the job on the agreed terms, the owner of the project can file a claim on the bond. If the claim is found to be valid, the surety company will demand compensation from the contractor to the affected party.
Performance bonds pose benefits for both the client and the contractor. Because they’re often a mandatory requirement to being awarded a contract, having a performance bond can help you win projects of any scale. Also, by providing your clients with a safety net and an assurance that they can hold you accountable for the work that you do, you boost their confidence and enhance your credibility in the industry.
Bennett and Porter can hook you up with the right performance bond for your business. For details and information, get in touch with one of our insurance professionals right away!