Top 6 reasons to get a surety bond
Sept. 25, 2017
If you own a business, surety bonds are either a necessity or will allow you to bid on high value projects. They will reassure the project’s owner that you're able to complete the job.
Here's how it works
If you qualify for bonding, the surety company – in this case, SGI CANADA – will provide a guarantee to the project owner that you’ll fulfill the conditions of your contract. These conditions will be: finishing your contract on time, doing the work for the fixed price you agreed to (may include extras) and meeting the technical details of your contract.
If something happens, and you aren’t able to meet the conditions of your contract, SGI CANADA will find a way to resolve the issue so that the owner can have the project completed for the original price you agreed on. SGI CANADA will make sure that the owner receives excellent value from the bond.
Our top 6 reasons to get bonded by SGI CANADA
- You need a bond to work in your industry - In some industries, you will need a bond in order to be licensed to work in your field. Government agencies often regulate industries, and this extra step is intended to protect the public. The idea is that the person applying for the bond is vetted by the surety company prior to their receiving a licence to do work for the public and if there is a problem the surety company will use the bond value to correct the error.
- Often, you need a bond to be able to bid on a project - When the project is large, the stakes can be very high. That's why most government agencies and large companies will ask potential contractors to provide bonding if they're the accepted contractor. This provides a guarantee to the project owner that you, the contractor, are technically and financially able to fulfill the terms of your contract.
- Industry recognition with your peers - If you're able to tell industry peers and possible collaborators that you can provide bonds, it will inspire more confidence in your work. It may even lead to more opportunities.
- Bonds free up cash - If you don't currently have a contract bond facility and you're relying on letters of credit instead, you’re essentially tying up large amounts of your most valuable resource – cash. Providing bonds rather than letters of credit allow you to have free flow of cash which is better used on successfully operating your business.
- We provide solutions - The SGI CANADA surety department is staffed by surety professionals who understand the construction industry. Whether you need a bond for a single job or would like to form a relationship, we’ll customize a solution that fits your needs.
- SGI CANADA has been offering bonds for over 50 years - We've been at this a long time and we know what we're doing – some of our customers have even been bonded by us for 40 years. No matter the size of your business, we'll treat you like a big customer. We'll help you figure out the type of bond you need – and if you qualify, we'll offer a quick turnaround time to help you win business quickly and efficiently.
Find out more about SGI CANADA's surety bonds today.