Depending on whether you are new to construction or an experienced in the industry, we can’t deny the fact that getting a Contractor bond can be confusing. It is becoming impossible to operate the construction industry without a Contractor bond in California. To avoid a struggle when getting the bond, here are some steps to guide you.
Confirm The Bond Form You Need
When applying for the bond in California, you need to fill some forms. The form differs from one bond to another. For you to be served with ease, you need to know which form to fill. When you have the right form and bonding cash, the surety provider will serve you fast and accurately. To have the correct information, contact the relevant government agencies. Here is a look at the different types of bonds in California.
Apply for a bond
After you have the right form and bonding money you can now search for a bond provider. After you find the right provider, he will ask for some basic questions regarding your professionalism and financial history. Depending on the bond provider, you may be asked to provide a social security number. If the company is registered under more than one owner, you will have to provide a financial statement for the other shareholders.
Get Bond Quote
After you have applied for a Contractor bond in California, you will get a quote. It worth knowing that the bond quote depends on some factors. One obvious factor is the bond amount, the higher the bond amount, the more the bond quote. Another factor considered is your credit score. If you have a good credit score, you may end up paying between 1 to 5 percent of the bond amount while is you have a bad history you can pay up to 20 percent. To get the bond quote, contact your bond provider.
Pay for the Bond
Once you approve the quote, you will need to pay the premiums. Most bonding companies require you to pay the whole premiums up front for you to bet the bond. If you are lucky, you can get underwriters who offer premium financing- only if you qualify. After the full premium payment, the company will process your bond and send it to you.
Bond information verification
Depending on how accurate you were when filling the forms, you need to verify the information in the bond is 100% accurate. Some things can lead to bond rejection which includes:
- Wrong business address
- Misspelled business name
- Incorrect bond amount
- Lack of correct signature present.
Take your time and verify the document information, in case you find an error contact your bonding company to help you fix the error.
File Bond with Obligee
The final step to getting a contractor bond is filling it with the obligee. But never file the bond if you are not sure of the information on the bond since it can be rejected.