3 Mistakes That Will Ruin Your Next Bonded Opportunity

Fellow contractor, buckle up! It's been a whirlwind of a week, but I'm here to share some hard-won wisdom with you.

Are you buckled? Okay, let's get started...

Today's topic? Three ways to accidentally sabotage your chances of landing a bonded project.

Now, I see these mistakes all too often, usually from folks who haven't quite grasped the ropes of the bonding game. So, let's clear the fog and avoid these pitfalls like a seasoned pro.

Mistake #1: Bidding Blindly

Imagine this: you've snagged your dream project, the owner's ecstatic, and then...surprise! You need a bid bond, and fast. Uh oh. Unless you've got a pre-approved bonding program, getting that document in 24-48 hours is about as likely as finding a unicorn in a hardhat.

Think of bonding like a mortgage for big-league projects. It takes time and preparation, just like qualifying for that dream house. Don't bid without the proper paperwork.

Action Step???? Befriend your surety agent! Chat monthly or quarterly about your pipeline, and get their expert advice on which projects need to be bonded. No program yet? Build a relationship with a reputable surety agency. They'll guide you through the setup process and teach you how to nurture that golden bonding program.

Mistake #2: Accounting Chaos

Let's face it, construction accounting can be a tangled mess. But when it comes to bonding, a clear financial picture is everything. I've seen countless contractors stumble because their statements wouldn't make sense to a blindfolded underwriter.

Here's the thing: your bonding program is built on those numbers. If I can't decipher them, how can I convince the underwriters to give you the green light? Don't let murky finances hold you back.

Action Step ????Team up with a construction-savvy bookkeeper or CPA. They'll speak the language of bonds and present your statements in a way that makes underwriters swoon. Check out my recent newsletter on? 4 Types of Construction Oriented Accounting Methods and How It Impacts Your Bond Program for a crash course. Need a referral? Just ask me!

Mistake #3: Combative Communication

Nobody enjoys working with a brick wall, especially when millions of dollars are on the line. Building a solid relationship with your surety agency is key to unlocking your bonding potential. Being combative or, worse, dishonest, is a surefire way to slam the door on those golden opportunities.

Remember, a surety bond is a giant financial trust fall. They're handing you a multi-million dollar safety net for your clients. Honesty and respect are the cornerstones of this game.

Action Step???? Be upfront with your surety agent. They're there to advocate for you, but they need the whole story. Build trust with a reputable agency that can nurture your program and guide you to bonding greatness. And remember, combativeness raises red flags faster than a dropped hammer. Be open, be honest, and watch your bonding journey soar.

Remember, Friend, the power of your bonding journey is in your hands. Steer clear of these common pitfalls, and watch the doors of opportunity swing wide open.

Be honest, do good work, and let the good times roll (and the bonds flow)!

I'm here to cheer you on every step of the way. Your construction journey matters, and I'm your construction compass pointing towards a brighter, bonder future.

See you next weekend, fellow contractor!

Neb Aynu

Founder & Owner Kingdom Bonding

[email protected]

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