Construction project risks can affect contractors and subcontractors, lenders, borrowers and taxpayers. Surety bonds in NJ protect these several interests on a construction project. By working with a bonded contractor you know that they have been judged capable of fulfilling the contract obligations.
A contractor will submit to a thorough pre-qualification process by the insurance company in order to obtain a bid or performance bond. In fact, bonded construction projects are more apt to be completed than ones with no bonding because the insurance company also requires indemnity insurance from the contractor.
If a construction project has a labor and materials payment bond in place, all subcontractors, suppliers, and laborers are protected. They are assured that they will get paid for their materials and labor.
A contractor’s reputation is enhanced by being successfully bonded for projects. Willingness to be bonded whatever the size of the project shows that the contractor is confident in his abilities to deliver a successful end result. This in turn will increase business opportunities for the contractor.
No matter what the experience level of the contractor, things can go wrong in construction. Surety bonds in NJ have been used for years as a reliable tool to make sure work gets done.