What You Need For A Bid Bond Request
Projects Big or Small, You Need These Two Things
Whether it's a small or large contract that you want to bid on, the first thing you must do is complete and send a bid request form and the job specifications that you get from the obligee. The bid request form asks for information about your company, the obligee and the contract, such as estimated contract cost and the job cost breakdown. If you want to bid on smaller contracts, about $350K and under, this is all you need to worry about since approvals are based on your personal credit. Learn the steps you need to take to get bonded for construction projects.
More Is Needed for Big Projects
If you want to bid on projects that are over $350K, you'll need to provide more than just the bid request form and job specifications. Larger contracts are based on more than your personal credit, as the surety company will also request and review your business financials and industry experience. All of this information is required and used to get an idea of whether your company is able to handle the larger project you want to bid on, so make sure you provide the most accurate information possible to present your business as capable to get the job done.
Using a construction CPA is highly recommended to present your company in the best light possible and give you the highest chance for approval. Read our article to learn more tips to increase your bid bond limits.
Streamline Your Project Management Using Software
As mentioned above, the required bid request form asks for contract details such as the job cost breakdown, which includes profit, materials, labor, subcontractors and overhead. Presenting these details can be confusing and difficult when trying to record in a paper system. That's where construction bid software comes in; it can be used to estimate your contract costs and view and manage your company's most important metrics. Harnessing the power of software will give you a better chance at winning the projects you want. Once you are awarded the job, what you need to do next and how bid and performance bonds work hand in hand.
Author: Eric Weisbrot
Eric is an industry expert that specializes in taking complex surety concepts and explaining them in terms that make sense to the general public. He also manages the JW Surety Bonds website and works with various partners to help further educate the public on suretyship using various mediums.
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