No matter where you live in any part of the world, you might have plans to have a swimming pool installed. This is not such a difficult project as long as you have the right tools and plans in place. You might need to consider several things before selecting the company you would want to hire to get the job done for you. One of the things that should be top of your list would be a swimming pool contractor with a surety bond.
We will not get ahead of ourselves here; instead, we will take it slow, starting from what surety bonds mean.
- 1 What is a Construction Surety Bond?
- 2 Tips for Selecting a Swimming Pool Contractor
- 3 What Exactly are the Benefits of Surety Bonds?
- 4 Final Note
What is a Construction Surety Bond?
There is a difference between insurance and a surety bond. Even though a surety company may be part of a bigger insurance company, these bonds are not classified as insurance policies. These types of securities create smooth transitions from the financing of constructions to finance and even provide support to whoever holds the contract to ensure that the project is completed, as in the case of privately funded projects.
For public-funded projects, they support payment protection, contract completion, and prequalification of contractors and subcontractors. It usually comprises a three-person party; the principal, the contractor, the obligee, the owner, and the surety.
In this scenario, the principal pledges to perform or carry out contracts according to certain conditions. Once such security is applied in construction, it is usually called a construction surety bond. You can check this website for more on contractor bonding.
Tips for Selecting a Swimming Pool Contractor
According to recent studies and research, it was observed that these contractors might have had a tough time at the market. They opted to provide some extra services to their clients, including repair and maintenance plans, to offset their revenue losses.
Smart ones have taken their time to analyze the areas of growth in the industry and establish themselves in better residential areas. Do you want to install a swimming pool in your home? If yes, then read the following carefully;
Make Sure that their Workers Compensation Insurance are Secured
This should be in line with licensing board requirements. Even if they have no staff, they still need to have that type of insurance. It is usually obtained by contacting local insurance brokers.
Make Sure They Follow Licensing Board Requirements
No matter the area they are located in, it is always necessary for them to get licensing and accreditation from the relevant authorities. They also need to abide by the country’s rules and laws regarding the repair, maintenance, and installation of swimming pools. The team at https://www.contractorbond.org/swimming-pool/ is licensed and qualified to help out with your building contracts and bonding.
Make Sure their Representatives Are Fully Registered
Some counties and states require that all the swimming pool representatives that negotiate, sell, or solicit swimming pool contracts be registered by the state. If they work with more than one company, they need to have separate registration forms with the relevant bodies.
They Should Be Bonded
Local bonding and insurance companies can always grant surety bond coverage to swimming pool contractors. They can secure bonding before commencing whatever kind of contract work. Because swimming pool installation costs may be high, bonds may also be high, so they may also need to find ways to get cheaper and better security packages. These agreements also have to be approved by the relevant licensing bodies.
What Exactly are the Benefits of Surety Bonds?
If you have taken some time to analyze the construction of a project, you will understand that surety bonds are essential if one wants to mitigate the risks involved. Taxpayers, owners, subcontractors, and contractors are protected by these agreements because:
- Contractors are more inclined to finish bonded projects than they are to finish unbounded projects. This is because the surety company demands corporate or personal indemnity from any contractor that fails to do so.
- These agreements have the potential to increase or open doors of opportunities to more project opportunities.
- The surety company tends to fulfill the contracts in any event of default on the part of the contractor.
- Contractors are usually made to undergo rigorous prequalification, which means they are assumed to be capable of fulfilling their end of the bargain. Surety providers are also assumed to provide management, financial, or technical assistance to these contractors.
In the end, every contractor needs a surety bond, not only those working with swimming pools. However, if you are a swimming pool contractor, consider the benefits of this type of agreement and get yours today.