The Expert Podcast

so how does a surety bond help you as a company perform in the market place as a competitive bidder. well a part by surety bond might help you get a contract where the other party to the contract might want to make sure your performance is guaranteed with out you having to have additional reserves or maybe even having to have additional financing for equipment or materials. if you can obtain surety bond and the S. B. A. you can see from this help guarantee some of these big bonds that you may be able to bid on contracts with government agencies that are covered by the Miller act from the nineteen thirties or even mini Miller acts contracts for local governments that require the performance but also the warranty of that work. so let's say if you're contracted to repair bridge and ten years afterwards that bridge fails because of your work the government agencies not going to know if you're gonna be around to fix that to repair or fix that damage even if you are around you may not have the resources to do it or you may just refused to do it. a bond surety bond provided by bonding agency will provide the backup guarantee that that contracted client can rely upon to make sure that their future use of that repair bridge or whatever the contracted item is is going to be sufficient to make sure that their money that they spend on the contract isn't gonna be wasted. another way it helps them is if you start a contract and then abandon the project in the middle of performing the repairs or construction and they know that that contract will be guaranteed to be completed either by another agency or to have refunds for what it takes to fix the repairs according to what was agreed upon in the contract you have with them. so it's a three party contract between you the by company and your clients it helps the client have some sufficient comfort that their agreement is going to be fulfilled as per the agreement that you have contracted with them.