As a contractor, you regularly bid on projects in the hopes of securing them and, therefore, gaining business. Many businesses want to ensure they get a quality contractor for the job, and bid bonds in Massachusetts can help show proof that you can comply with the contract. Part of establishing yourself as a credible professional will be to insure you can get the job done – and a bid bond goes a long way toward guaranteeing that.
How It Works
There are a few reasons that companies may request a bid bond:
- They want to ensure no one submits a frivolous bid
- They want to know contractors are financially stable
An institution that provides bid bonds in Massachusetts will run a comprehensive credit and financial review of a contractor before they will hand out the bonds. In the construction industry especially, these bonds are common and contractors are typically only competitive if they have them – sometimes they are even required in order to get licenses and permits.
When you commit to bid bonds in Massachusetts, you demonstrate your credibility. If obligations laid out by the bond are not met, the contractor can be held liable and have to pay the company up to 10 to 20 percent of the bid. You can secure bid bonds through contacting a company that works well with contractors and understands the industry well.