Warning Signs that may Deter your Bond being Processed
Many contractors find that the surety bond process can be complex. But, having a competent and knowledgeable surety bond producer is the first step to making sure your project will get underway. By answering the following questions, a contractor may be able to determine if there may be a delay in approval. Questions to Consider: 1. Is there already a claim open with the current surety? If another application has not yet been approved, that may be a warning sign that there is a reason for the delay. The best way to correct this is to (a) resolve any issues with the surety bond claim and (b) work with the surety bond producer, if both parties cannot resolve the issue on their own. 2. Is the project within the realm of the contractor’s expertise? If not, the underwriter may worry that the lack of understanding of the project may delay it. The best way to remedy this is to explain why the contractor is bidding on the project, how the contractor will avoid and/or solve any potential risks and why the contractor is seeking this particular project. 3. Is the project outside of the home turf? If the contractor is bidding on a...
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