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.
I am looking to grow my business and wondering if I should consider getting surety bonds and pursuing the public market?
- The good, the bad and the ugly
- Good: the is a large market of available work to bid
- Bad: Often the projects are awarded based on lowest bid
- Ugly: some companies/owners will use bonds to take advantage of contractors
- The typical work type
- Projects are often Design/Bid/Build and are heavy/highway or Government/Education buildings
- These projects require a lot of good documentation – you must CYA
- They require good planning and preparation and thorough knowledge of your contracts as well as any clauses/rules included by reference
- Is it right for your company
- Do the characteristics fit you culture
- Do you have the right staff and procedures
- 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.
Review your culture and systems
Manage and CYA
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