When you apply for a bond with Trade Guaranty + Surety there are 2 things we need to determine:
1. Can the contractor demonstrate they have the skills to complete the job?
2. Does the contractor have the resources (financial, plant and labour) to complete the job?
We need to know about the contract you want a bond for, your track record, your current financial state and how you operate your business.
A bond is not a policy of insurance, it’s a policy which backs the contractor’s ability to complete a project.
To be eligible for a bond, company’s need to provide enough information for Trade Guaranty + Surety to determine the following:
• Current financial position of the business (strong balance sheet)
• Professional financial and operational management (qualified and proficient operator)
• Evidence of previous successful selection and execution of projects (appropriate size & scope of contract)
• Good capital retention and control over exposure to existing projects (prudent risk management)
Gaining consecutive bonds can be a much easier process.
For your first successful bond application you will need to submit a lot of information but the second, third, fourth…..bond can be easier.
It’s a bit like getting a new job versus an internal promotion. A new job involves going through the application, interview and reference process. Applying for an internal promotion is easier. You might need to submit an updated CV but the company knows who you are, how you work and what projects you have completed. You just need to negotiate terms for the new role.
Click here for a simple ‘bond check list’.
Trade Guaranty +Surety is here to help NZ contractors gain bonds. To have a confidential chat about performance and retention bonds phone Tony +64 21 992 992.