Receiving a bid for a new project keeps the payroll running for many construction firms. Wholesale contractor insurance helps you keep the costs of operating your construction firm in check. Here are three things you need before breaking ground on that project.
There are many types of bonds construction firms may have to obtain to provide the end client a guarantee that the project is completed on time and satisfactorily. The client may require a performance bond, payment bond, surety bond or any combination of bonds for the project. Larger projects are more likely to require one than smaller projects.
In addition to bonds, construction firms should at least a general liability insurance policy to minimize the financial loss in the event of a lawsuit. According to American Team Managers, insurance is available for large dollar amounts, small firms, trade firms and general contractors.
Make sure you have the right subcontractors available to complete the job. Road building and residential homes may not need the same contractors to complete the job. Knowing who you can use and that they are available for the job can help you finish the project within the contract terms.
Once your assets are protected with wholesale contractor insurance and you have the bonds and subs ready to go, you can start that project. Be sure to communicate regularly with the client to ensure their satisfaction.