You can get a construction subcontractor surety bond from many different companies, but not every provider works the same. Partnering with a surety agency that taps into a large pool of bond providers is the best bet. This offers more choices for well-priced bonds. A strong surety agency will not only have several options of bonds, but it also provides resources and claims help for construction subcontractors when they need it most.

Being a construction subcontractor requires some business know-how. That includes adequate management of the business finances. Understanding which customers owe for work performed and in what amount is a critical factor in strong management. Also, having clear records of business assets, liabilities, and successful work history is beneficial. Each of these components give a surety bond company the full picture of the business. It helps lower the cost of a new bond. Several resources exist for business financial management and record keeping, and successful construction subcontractors use them early on and with regularity throughout their business operations.

One of the best steps construction subcontractors can take to reduce the cost of surety bonds is avoiding claims whenever possible. When a customer shows signs of filing an official claim against a bond, you must proactively resolve the issue. The surety company may be able to provide some assistance in this arena. However, it is the contractor’s responsibility to build strong relationships with customers from the start. Having a history of successfully completed projects is necessary for keeping surety bond prices low.