A general contractor has his (or her) work cut out for him these days. Trying to stay abreast of changing regulations in the midst of balancing all of your competing deadlines and schedules with a constant eye to the budge is a job in and of itself. If you are looking to expand your business, you will want to make sure your operation can withstand the scrutiny that comes with obtaining surety bonds in Maryland. These instruments, which ensure that the contract will be completed in the event you (as the contractor) default on the job, are issued by a surety company. The issuing company would then be obligated to either secure a replacement contractor to complete the work, or compensate the project owner (known as the obligee) for the financial loss it sustained as a result of your inability to finish the work. There are four types of these instruments (bid, payment, performance, and ancillary), each of which is used to offer protection in various circumstances.
Why you want to get one
If you are interested in going after bigger, better jobs, you need to be able to throw your hard hat in the ring for contention, so to speak—perhaps for that new government building that’s going up downtown. However, for federal contracts that are worth $150,000 or more, these instruments are required so that you can even bid for a job, or as a condition of a contract award. Without the ability to obtain an instrument, you’ll find that you will be automatically out of the running for many other types of work, such as many privately owned construction jobs as well as most state and municipal government projects; even service and supply contracts may require them.
Talk to a professional about your needs
If you are looking to take your business to the next level, chances are that you need surety bonds in Maryland. It’s best to talk to an experienced professional who knows about these instruments and can offer guidance about the best companies to work with. Contact a professional agent today to learn more.