A Surety Bond Will Provide You With Financial Protection
A written agreement that states which services will be rendered by a specific date may not protect a customer, especially if the wording is vague or if important details are missing from the document. If you experienced an unfortunate situation with a construction contractor in the past, you may be wary about hiring another contractor to aid with the expansion of your business. A surety bond will protect you throughout the project and ensure that you do not pay money for a job that is not performed adequately.
A reputable construction company owner will be licensed and bonded and will provide documentation upon a client's request. A surety bond is a guarantee that is provided through a third party. The third party is commonly an insurance company and the bond will cover costs that you incur throughout the building project and losses associated with needing to shut your business down while the project is underway.
For example, since you are seeking the expansion of your business, you may have determined that you will not be able to operate your business as normal until the project is complete. Even if you do decide to remain open, you may need to limit the number of hours that your workers are responsible for or may choose to shut down some departments within your company. These decisions may result in a loss of revenue.
When you make an agreement with a construction contractor, request that they seek a surety bond. When a bond is obtained, it will be valid for the duration of a construction project. If the project isn't completed as agreed upon, if materials that were used were not the ones that you selected, or if the project takes longer to complete than the contractor specified, seeking legal recourse is necessary.
A construction attorney can be hired to represent a contractor, an insurance company, or a client. Their job is to read through written agreements and determine who was at fault concerning a dispute.
If your future construction project isn't executed as promised and you paid out money in advance, an attorney will begin the process of seeking a bond resolution. An insurance company is required to furnish a payment that is equal to the amount of money that you already paid, plus render fees that are associated with business losses that are related to the hiring of the construction contractor.
For more information, reach out to a construction surety attorney in your area.