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Should You Get a Surety Bond?

Have ever heard of Boston’s Big Dig, the Denver International Airport, or the World Trade Center Transportation Hub? What do all these projects have in common? They are construction projects that went way over budget. Boston’s big dig went $13.4 billion dollars over budget. The Denver International Airport went $3.1 billion over budget. And the World Trade Center Transportation Hub went $2 billion over budget. Construction projects constantly either do not get finished or go over budget. So how does an individual or small business person protect themselves ? One way is to make sure that the construction company has a surety bond.

Let’s start with the basics of a surety bond. According to Wikipedia, “A surety bond is defined as a contract among at least three parties.” You also need to understand the difference between property & casualty Insurance vs. surety bonds. The best way to sum up the difference according to the Insurance Journal is “The largest difference between property /casualty insurance and surety bonds lies in what entity ultimately has to pay claims.”

Usually what happens is two people agree for a job to get done like a construction job. The individual may require the construction company to get a surety bond. This protects the person having the work done. It makes sure the promise made by the construction company to their customer is completed.

As a small construction company, Surety bonds are needed to level the playing field. Most smaller construction companies have limited capital. If they are delayed by bureaucracy, then that can make things worse. So, a company can purchase a surety bond at a fraction of the cost of the entire project and not go bankrupt. This allows smaller construction companies to be able to compete with the larger companies. You will want to obtain some surety bonds scottsdale az, if you want to compete in the hottest job market. Where there are lots of jobs, then you will see lots of construction business for sure.

A surety bond cost anywhere between 1 and 15 percent of the total bond amount. Construction bonds typically cost more. Surety bond rates are based on your Personal credit score. For example, if you need a $500,000 surety bond and you get quoted 10%, you will pay $50,000 for your surety bond. This can make growing your business more difficult.

Many states require certain licenses to have a bond. Some examples are mortgage bonds, Contractor License bonds, and private investigator bonds. These bonds insure that you will faithfully and ethically practice good business, or someone could make a claim against your bond.

Surety bonds help weed out bad contractors. Someone who is unable to secure a surety bond is not someone you would want to take on a multi-million project. Surety professionals investigate the financial strength of the company, their ability to perform and their reputation. This allows the surety professional to be confident in the contractor’s ability to finish the job.…

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Business Products & Services

A 10-Point Plan for Businesses (Without Being Overwhelmed)

The Signs that You Should Look Out for to Know if Your Business Requires a Computerized Maintenance Management System

When scheduling and planning the maintenance of your equipment, the best tool that you can use for it is a computerized maintenance management system or known as CMMS since it works in the same way as how an MRP system or material resource planning orders and assembles raw materials. With the use of computerized maintenance management system (CMMS), there is no need for you to run short or waste more money on the storage needed for your business. Although computerized maintenance management system (CMMS) is not that expensive when compared to MRP systems, it can still cost you a significant amount of money, and you have to learn how to use and maintain it as well. Therefore, you have to take into consideration the signs that will be discussed below so that you will have an idea on when exactly your business can benefit well from a computerized maintenance management system (CMMS).

What You Need to Do So that You Will Be Able to Take Advantage of Maintenance Management Systems

Not Being Able to Comply with Maintenance Schedules

There are times when your maintenance department is just too pre-occupied dealing with the things that are breaking down and they no longer have some time to spend on doing maintenance repairs, if you have experienced this in your business, it is already a hint that you need to have a CMMS system as soon as you have extra personnel so that the backlog repairs will taken cared of. Thus, having a computerized maintenance management system (CMMS) is the best option that you have for the reason that it can prevent the most unexpected breakdowns that can possibly happen with the attendant disruptions in production.

The Maintenance Needed Can Already Occur Even Before Repairs are Required

Most likely, you will end up deferring the maintenance that your business needs until you find out that your equipment already needs to be repaired, if you will not schedule maintenance. The equipment that needs to have oil replacement from time to time can be associated with this scenario since it usually gets noticed only when someone reports that there is smoke coming from burned oil, or there is an extra noise that is caused by the contaminants that have affected its mechanical components. Making it a habit to have the proper maintenance needed for your equipment from time to time can help significantly in ensuring that it does not wear out easily. If you will not consider the maintenance that you need, you will likely end up replacing your equipment sooner that you expect, and you also need to pay more eventually because of delayed maintenance.

The truth is, some companies end up wasting their resources, as well as their time doing some maintenance based on their calendar instead of its run time.…