There are a lot of construction bond types to choose from when you’re taking on a project, but not all of them apply to every new building or development your team works on. So how do you know what to buy when? If you’ve been around the block a few times, it gets easy to predict. If you haven’t, your bond provider or insurer can help you parse the purposes of various construction bonds to decide when you need each. One of the most common types is the performance bond, which protects clients in the event your team fails to deliver the progress needed to reach milestones on time or otherwise causes losses to the customer based on performance issues.
How Much Protection Do You Need?
Figuring out the right bond values can be difficult, because you need to be able to calculate the maximum loss your performance issues could predictably cause the client to be fully covered. That’s why your best bet for a cost-efficient bond that covers everything you need is to work with people who make construction performance bonds their core business. That way, your bond provider’s experience helps you make sure you’ve got a robust risk management solution before you jump into a new project. That gives your client peace of mind, and it protects your business at the same time.