The “Building Contractor-Surety Relationships: Part 1” article focused on what surety companies look for when they are considering writing contract bonds for a contractor. In this article, we will delve in to ways to build up a contractor-surety relationship once a contractor gets their foot in the surety bond door.
It’s important for contractor’s to keep open communication with a surety agent once they have obtained bonds for projects. The three “M’s” are important for the growth an established business relationship between the surety and contractor.
Meeting: It’s important that contractors meet with a bonding agent and CPA because of the ever changing nature of the construction and surety industries. As a result, bonding companies often need different information than in the past; the more a contractor meets with a surety agent and CPA, the more informed they’ll be about what’s needed which will make the bonding process go much smoother.
Maintaining: This refers to good communication between the surety and contractor; and where trust and character is built. One thing that surety companies don’t like is a surprise. It’s important for a contractor to keep open communication with the surety concerning projects and to provide reports throughout as oppose to keeping them in the dark.
Maturing: This takes more time than the other two “M’s” but can be the difference between contractors getting bonded or not. When the time is taken to establish a relationship with the surety and continue it using professional and truthful business methods, a contractor will see that they have a responsive company on their side in the surety and will more often get the jobs they desire.
The surety bonding process can be very murky to both new and existing contractors. Communication is the key to building up a contractor-surety relationship; and the more that’s understood about what surety companies look for from a contractor, the more transparent the world of surety will become.