construction surety bondsSay there is a huge project opportunity coming down the pipes, and your firm would be sitting pretty if they could get it. What can you do to make sure you land this important job.

The key is in preparation. If you can prepare adequately to send off a bid, then you have much greater control over the potential outcome. Even better, the preparation work you put in now will help you down the road with later bidding processes, regardless of whether or not you happen to win this one.

So make sure that your firm can prepare adequately for the next critical bid, including the required construction surety bonds, by using the following workflow.

Research the Relevant Project Regulations

If you are bidding on a publicly funded project, you can bet the farm that you will need to comply with a very specific bidding process and format in order to satisfy regulatory requirements. For instance, the state of Massachusetts has specific tables arranged for the procurement practices they must take corresponding to the total project value. A project worth less than $10,000 does not have to be advertised at all and does not require sealed bidding, whereas a project with a value of over $10 million requires submission of statement of qualifications before bidding even begins.

Other regulations can come into play based on the requirements of the project. Perhaps a storm water system upon the site requires civil engineering expertise, or a nearby creek requires compliance with EPA stream buffers and anti-siltation practices.

Your project owner does not even have to be a public agency to make you jump through hoops; many large corporations have highly finicky standards for their projects that must be met. Study up on these factors long before you prepare for the initial bid to ensure that you have the administrative resources and the added overhead needed to address them.

Shop Around

Too many firms stick with the same brands of materials, the same suppliers and the same pools of contractors from job to job. While past experience is the best marker of quality, you could be inflating the size of your bid by not actively seeking out the lowest price every time.

Secure Needed Credentials and Financial Resources, Like Construction Surety Bonds

Large projects almost always have liability insurance requirements, surety bond requirements and a host of certification requirements. Your accounting department will need to double check that your firm can qualify for the policies and bonding they need in order to be eligible to bid.

If you have to raise your aggregate bonding limit, for instance, you may end up changing over cash payments to credit in order to increase your liquidity. You may also need to secure bonding specific to the industry you will be aiding, such as applying for a DOT bond.

Practices like these separate firms that are able to bid time and time again without getting rejected from those who regularly fail to meet the minimum qualifications. If you need any help assembling the financials of your bid, including securing the needed construction bid bonds, performance bonds and payment bonds, then do not hesitate to contact National Surety Services, Inc.. We can provide the surety bonding as well as the regulatory and financial knowledge your firm needs to get a leading edge.