CONSTRUCTION STRETCHER BOND
COUNT ON STOKES SURETY BONDS
As someone who is new to the construction industry in Texas, you likely know little about construction bonds. You’ll want to change this as quickly as possible. You will need to know more about what is a construction bond? so you can get bonds and obtain contracts quickly.
You may have heard something about stretcher bonds. While this is one very important bond, it has little to do with surety. You have to obtain bid, performance, and payment bonds so you can protect your clients and obtain work. Stretcher bonds are vital when installing chimneys but they do not fit into the surety category. Below, you’re going to learn more about both.
TOO LONG; DIDN’T READ (TL;DR)
Construction stretcher bonds are commonly known as running bonds and their purpose is to provide support the weight and pressure of the building. However, failure to use these bonds can result in the building to collapse. Although they do not belong in the surety bonds category, they are vital to the infrastructure.
WHAT IS A STRETCHER BOND?
When it comes to constructing buildings, you’ll find that thin walls are not sturdy enough. You need something extra to support the structure. This is why you’ll want to take advantage of a stretcher or running bonds. Stretcher bonds are very important because they can support the weight and pressure. Without stretcher bonds, the building would likely collapse. Stretcher bonds do not fit into the surety category but they’re pertinent anyway.
WHAT IS SURETY?
A surety bond for construction projects is much different than stretcher bonds. When you obtain construction surety bonds, you’re giving your word to your clients. You’re letting them know that you’re going to get the job done right. You’re promising that you’re going to complete the project before the deadline. Surety bonds involve three parties and they’re a good way to give your clients confidence. Furthermore, you have to understand that surety bonds are required. You won’t be able to obtain projects until you’ve obtained surety bonds.
COMMON CONSTRUCTION SURETY BONDS
The construction industry in Texas uses an array of construction surety bonds. However, a few bonds are more important than others.
The first is the bid bond. When you decide to bid on a project, this is the first bond you’re going to use. The bid bond must be obtained when placing a bid because it confirms that you’re going to honor your bid. In addition to that, it lets the client know that you’re going to accept the project if your bid is accepted.
To learn more about bid bonds in detail, please take a look at the following links:
You also have a performance bond. The performance bond guarantees your firm’s performance. It lets the client know that you’re going to get things done on time. To learn more about this in detail, please take a look at how does a performance bond work?
Finally, you have payment bonds. These bonds are important because you want your suppliers to know that they’re going to get paid. Payment bonds do that.
You may not need all three bonds for your next project but you should learn as much as possible about them. You’ll likely need them at some point so you should be ready for anything that comes your way.
OBTAINING SURETY BONDS FOR CONSTRUCTION
Construction companies in Texas will need to obtain construction surety bonds at some point. When you’re bidding on a new project, you’ll need to be ready to obtain bonds. You’ll need to start with the bid bond before moving to the performance bond. Depending on the project, you may need a handful of other bonds too.
Either way, you’ll find that obtaining surety bonds doesn’t have to be difficult. All you have to do is find an excellent surety company. You’ll want to choose a company with a history of standing up for their clients. Surety bond companies are not equal. So, you’ll want to team up with Stokes Surety Bonds. They’ll point you in the right direction and help you find the bonds you need.
To learn more about this for different types of construction bonds in detail, please take a look at the following links:
UNDERSTANDING CONSTRUCTION BOND COSTS
At the end of the day, Texas construction companies are worried about the costs of construction bonds. They have to work hard to minimize their overhead costs. Otherwise, they’re going to run into serious problems. Construction bonds are pertinent and cannot be ignored.
To learn more about the costs of different types of construction bonds, please take a look at the following links:
• Asking Price of Bid Bonds
However, you have to realize that the costs of construction bonds are going to vary depending on numerous factors.
When applying for bid or performance bonds, your surety provider will want to know more about your company, its history, and your personal credit. This information will be used to determine how risky it will be to give your company surety bonds. If the surety determines that you’re riskier, you’ll end up paying more and vice versa. Additionally, things can be very different for contractors with no previous surety bonding history. The best way to find out how much you’ll need to pay is by working directly with a surety company.
NEED A CONSTRUCTION SURETY BOND FOR A JOB? COUNT ON STOKES SURETY BONDS