How to ensure your rush submission gets an immediate response from the market and is handled as efficiently as possible
As an experienced broker, you know that new clients typically approach you at the last minute when their bonding deadline is looming large and they need immediate help.
Establishing a bonding file with a surety company can be an involved process. This is a guide to the initial information you should gather before you even consider approaching your market.
Contractor’s questionnaire:
This is a basic bond application document used by every surety bond company.
It is best to use the Approved Surety form, as your chosen market may not appreciate having a competitor’s name emblazoned on your submission.
Financial statements:
Most recent year-end statements produced by a Certified Public Accountant or Chartered Accountant.
Other years and formats are helpful, but the CPA year-end statement is mission critical.
Information with regard to immediate bonding needs:
- Is bonding required for a tender, for example a bid?
If yes, what is the tender or bid closing date?
Time is of the essence.
Questions:
-> Who is the contractor bidding to? Include the name of the organization or government body.
-> What is the tender date?
-> What is the estimated dollar amount of the job the contractor is bidding on?
-> Brief description of the nature of the contract or project.
-> Location of the project.
-> Bonding requirements at tender stage, i.e. bid bond percentage or dollar amount, consent of surety, or agreement to bond.
-> Dollar amount of any other outstanding tenders.
-> Bonding requirements if tender is successful, i.e. performance bond, labour and material payment bond, maintenance bond, and percentage or dollar amounts of each.
- Is bonding required for a contract about to be awarded to your client?
If this is the case, then you possibly have a little more breathing room, but not necessarily. Gather the following information before making your submission:
- Copy of the award document or notification that will have been sent to your client.
- Exact contract amount.
- Contract date, if available.
- Bonding required, i.e. performance and/or labour and material payment bonds, maintenance bond, often incorporated into performance bond, and percentage or dollar amount of each.
- Estimated time required to complete contract.
- Duration of warranty period upon completion.
Other very helpful information
A Work on Hand Schedule, or WIP schedule, is a more or less standard construction industry document, so your client will likely know what it is. If not, ask for a listing of contracts presently underway, including the following information:
- Brief description of contract or name of customer.
- Dollar amount of contract.
- Estimated completion date.
- Estimated cost to complete the contract.
