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Getting Bonded

Discussion in 'Business Operations' started by Lech615, Nov 7, 2001.

  1. Lech615

    Lech615 LawnSite Member
    Posts: 105

    I was wondering if you need to be bonded in order to on some commerial accounts. If you do, does anyoine no the procedure to become bonded, how much, etc.? Thanks.:confused:
  2. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    Some commercial customers require bonding.
    Ever apply for a commercial loan ??

    Getting a loan is like having a cavity filled.
    Getting bonded is like having a root canal, only with a root canal you get anestetic first.

    Your insurance agent should be able to help you. Bonding is an insurance policy. The bonding company writes a policy that states that if you don't, won't or can't finish a job, they pay off to get it completed.

    The bonding company will then come after you (and everything you have) to recoup the dough.

    Bonding companies DON'T loose.

    It's difficult to get, especially the first time through the wringer. They will investigate your finances in ways you can't imagine. They ask questions about EVERYTHING. They check references, they want to know every job you've done for the past 3 years, how it turned out, what your cost was, how much profit you made. Then they want to know every job in progress, what your cost is, what your profit is, what it is to date, when you expect to finish the job, how much profit you expect to make....... and on, and on, and on.

    You can do it... but it is a long involved process.

    Good luck. Once you get it.... it's nice to have and opens some doors.
  3. Kevin M.

    Kevin M. LawnSite Member
    Posts: 137

    Bonding is not difficult to achieve for your company. The previous post said it takes a long time which is not correct it took my company about 5 days to get the bonding for a goverment job at a nuclear power plant which we have done work for 8 times in the past two years. Bonding is not like pulling teeth its like getting insurance for your company which some jobs its real good to have.
  4. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Posts: 1,277

    Kevin, what size projects are you working on? I wonder if the difference is in getting bonded for $10K vs getting bonded for $10M.
  5. paul

    paul Lawnsite Addict
    Posts: 1,625

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