NewsUSA | March 15, 2019Commercial 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.