The bonded project market can be a great are for growing a business but watch for the roadblocks.

This Monday we are starting a new topic. Instead of the usual Time Mgmt / Organization topic we are switching to an Ask The Coach series. Every  Monday I will review and answer questions that have been sent in by our listeners. If you have a question or comment you can submit by clicking on Ask the Coach.

Today’s question:

I am looking to grow my business and wondering if I should consider getting surety bonds and pursuing the public market?

  1. The good, the bad and the ugly
    1. Good: the is a large market of available work to bid
    2. Bad: Often the projects are awarded based on lowest bid
    3. Ugly: some companies/owners will use bonds to take advantage of contractors
  2. The typical work type
    1. Projects are often Design/Bid/Build and are heavy/highway or Government/Education buildings
    2. These projects require a lot of good documentation – you must CYA
    3. They require good planning and preparation and thorough knowledge of your contracts as well as any clauses/rules included by reference
  3. Is it right for your company
    1. Do the characteristics fit you culture
    2. Do you have the right staff and procedures
    3. Are you prepared

Bonded work can be the great way to boost your business, but the stakes are higher if there is a failure. If you consider this market be sure to be thoroughly prepared. If you are considering and want any additional help let me know. I can help with getting you access to friendly bond markets and with the preparation.

Take-Action Items:

  1. Review your culture and systems

  2. Manage and CYA

  3. Stay on top of things

 

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