What exactly is this bond? How does it work & what is the cost?

 First of all, great decision to look into bonding. You are now one step closer to where the big boys with gigantic margins play. More and more jobs across all provinces in Canada are becoming bond exclusive – meaning you will have to provide a bond to even qualify to bid on a project. The great news is, over 80% of construction companies DO NOT have access to bonding in Canada.
When you are a bonded company and bid on jobs, you more than likely will be competing with only 1, 2 , or 3 other competitors in most cases unless the job is very main stream. So what does this advantage of less competitors do? You guessed it, you land more jobs. Not to mention, since companies that are bonded or in other words can provide a bond are rare to find, they usually charge well above the actual project cost. Why are they able to do this? Well simply because they can as there isn’t enough competition that is bringing down the price.
Before anything, understand one thing. Working with an insurance company and getting a bond is much simpler than the industry makes it seem. These bonds in the simplest words are financial guarantees that provide protection to whoever is hiring you. Because there is a risk of your company defaulting a job or not finishing it as promised, the bond provides an opportunity to the party hiring you to recover from any financial damages and loss of time caused by your company.
Click here to know more about #https://www.constructionbond.ca/