Businesses bidding on new project opportunities whether international or local, large or small, complex or straightforward always seek to portray their capabilities and strengths in the best possible light. But no matter how glowing their track record and balance sheet, the project owners they are trying to impress invariably require a guarantee that the proposed work will be completed as agreed or, if not, appropriate compensation is paid. And not just at the bid stage: they often want end-to-end security around any advance payments made, overall performance, warranties and post-project maintenance.
That is where play a big role. By offering to financially guarantee that your company will fulfil the terms established in a bond, they bring confidence and high levels of trust to the relationship between you and the project owner, the beneficiary of the bond.
But whether they are provided by insurance companies, or facilitated by (or a combination thereof), the different types of surety bonds and guarantees offer very different benefits and competitive advantages. These advantages can influence your margins on the project, the level of obligations you need to fulfil, your ability to bid for further opportunities, and more.
Here are five top reasons why insurers in particular make the best partners for companies looking to safeguard their projects with surety bonds.