Do You Need a Performance Bond?
In the competitive world of construction, performance bonds can spell the difference between success and failure for your business.
Performance Bonds and Clients
When bidding on a new project, you may propose certain standards and deadlines for your work. Once these standards and deadlines are put into a contract, they become more than a promise; they become a contractual obligation. However, being contractually obligated to a client doesn't necessarily mean that you are dependable and trustworthy. You could still breach the contract and leave your client with nothing but a potentially expensive and time-consuming lawsuit to file.
By getting a performance bond you show you are trustworthy and you give your would-be client an easier way to be made whole after a breach. And performance bonds are not easy to get. One must prove to an insurer that they are a worthwhile risk and sometimes, simply having proven that can turn a potential client into a paying customer.
Performance Bonds and Subcontractors
Performance bonds don't just help you secure the best clients; they also help you secure the best subcontractors. A performance bond guarantees your subcontractors that they will be paid for both their materials and labor, if not by you then by the performance bond. Even better, having been approved for a performance bond you show your trustworthiness and can attract the best and brightest subcontractors for a long-term business relationship that can affect many of your future projects. This not only helps your business by having attracted the best talent out there, but also by ensuring that your clients get the best possible work and reliability out of your entire team.
If you need a performance bond to secure your clients and your subcontractors, give us a call. We can help you obtain the bonds and any other business insurance needs you have. Call us today today at 214-824-8888 to get a free Texas surety bonds quote.