Better Roads Digital Magazine
Issue link: http://read.dmtmag.com/i/165348
HOW TO GET B NDED Growing a business requires planning for the future. Don't pass up a project just because it requires a surety bond. Obtaining one can prove worthwhile. Know your Business series, Part V "T he recovery is starting, and there are a lot of opportunities," said David Cayemitte, CEO of the Minority Business Development Institute (MBDI), a nonprofit in Bordentown, New Jersey, devoted to helping contractors obtain surety bonding. "Contractors can be part of the recovery and should start the bonding process early, so they can get a bond program and share in the opportunities." Not only does bonding open up the type of projects a firm can bid on, it can improve operations by forcing principals to focus on finances and not take unnecessary risks or more work than is doable. "Bonding brings additional advisers around you to help you run the business better," adds Cayemitte, who recommends contractors establish a suretybonding program that allows them to take jobs appropriate to their capacity. Open communication with the surety company helps foster a strong relationship. The surety company seeks to become a trusted advisor, says John Coyne, vice president of Bond and Financial Products at Travelers Construction Services based in Hartford, Connecticut. "The bonding company brings good insight and experience," Coyne reports. "Contractors should use the agent and bond company liberally as a sounding board." Bonding also may boost a firm's reputation, making it easier to snag jobs. "The ability to establish a bonding line says something about the company's character, capacity and capital," says insurance broker Jim Marquet of Graham Company in Philadelphia. "In some ways, it's a seal of approval for an emerging contractor. It can actually help you develop new business and be an indicator to general contractors or owners that you are a well-run business, managed prudently and will fulfill the job obligations." Construction University is produced by Better Roads and presented by Case Construction Equipment continued Better Roads September 2013 21 ConstructionU_BR0913.indd 21 8/29/13 1:14 PM