Getting your first project as a contractor is super exciting. It could be a house-renovation project, plumbing, or construction gig. However, you need to take several steps before conducting your first project. You need to ensure that you are fully prepared to show your client what you are capable of. More so, you need to do everything in your power to promote your business’s trustworthiness and reputation. Then, you can start building relationships with clients and improve your business.
Among the most important things to tick on your checklist before jumping right into the meat of the work is a contractor’s license, but before that, you need a license bond. Lack of a contractor’s bond could put you in a kind of trouble that has nothing to do with your quality. No one will risk hiring an unbounded or licensed contractor whatsoever. Some contractors find getting a contractor’s license bond to be tedious and tiring. They opt to do without it instead. That is only because they fail to look at the bigger picture to realize how much this aspect could affect their business in general. If you are among the skeptical individuals and not sure if you should get a contractor license bond, here are the top benefits and reasons why you need it.
A Contractor Requirement
For starters, you cannot run your contractor company without a license. A license or certification is proof that your skills and ethics meet the requirements of the authorities. It also proves that you have been approved to offer contract services in California. However, some industries, such as the construction sector, requires you to have a contractor or surety bond before getting a California contractor license. Some states, such as California, prohibit unlicensed constructors from offering the services. Getting a contractor license bond will save you from such trouble as it provides a guarantee to your clients that you will fulfill every aspect of your contract with them.
Business Protection Against Uncertainties
The license bonds are not only intended for protecting your clients’ interests but also, they can significantly protect your business. You cannot predict what happens once you get out there to the field, but you can always stay prepared for whatever comes your way. Having a contractor bond will protect your business against any claims filed against you. Many contractors also learn about hiring a business lawyer for increased protection. If you are sued over something you did not do or that was not your fault, you can relax, knowing that the surety contract got you covered regarding expenses.
Additional Company Protection
Other than protecting you against uncertainties, you will need a fidelity bond, whose aim is to offer additional protection to your company. This kind of bond protects your business against potential damages such as fraud, theft, and embezzlement from your workers. The bond is more like insurance to cater for such losses.
Positive Court Outcomes
You may need a court bond before a court proceeding. This is an amount that a defendant is expected to pay as a guarantee that they will show up on trial date. It does not have to be in monetary form necessarily, but it has to be something valuable. The bond protects you against potential losses in proceeding at court.
Better Reputation And Client Base
As earlier mentioned, very few individuals will take the risk of hiring an unlicensed contractor. The project owners are looking for service providers that they can fully entrust with the job. Having a contractor bond is the proof you need to showcase your professionalism. The bond acts as a stamp to show that they can trust you even with large projects. It will help you land small projects from homeowners first, which will then help you build a track record and improve your business reputation. Before you know it, you will be getting calls from large companies who wish to hire you. Obtain a contractor license bond to protect brand reputation and build a quality client base.
Surety bonds are an easy way of showing that your company abides by all the laws and regulations of the state. Your employers have the right to know if you do and whether they can trust you. The contractor bond shows your clients that they can fully rely on your professionalism. Moreover, the bond shows that you will do the job well to meet their expectations. Make the right choice for your business and get a contractor license bond to take you to the next level.