All You Need To Know About Surety Consent To Agreement Bonds
Canadian contractors must learn about surety bonds, before they can begin doing business within the country. There is truly an abundance of different bonds that are capable of protecting the owner and contract, during the construction process. The Consent of Surety is often overlooked, but it is undeniably important and should not be ignored. Within this article, you will learn about the benefits of making contact with SuretyKings and obtaining Surety Consent to Agreement Bonds, before placing your bid!
The Consent Of Surety
Before moving any further, you should take the time to learn about the basics. The consent of surety, which is commonly referred to as an agreement to bond, is a unique legal commitment. It is not considered a true bond, because the contractor does not execute it. Instead, the surety is the one that is responsible for executing the bond.
Now, it is time to learn about the purpose of the Surety Consent provided by SuretyKings. This bond helps to guarantee to the project owner that the surety will deliver the performance and payment bonds, if the contractor is awarded the project. Of course, there are a few things that this bond does not include. The bond does not guarantee that the contractor will accept the contractor or the price quoted, during the tendering process.
A project owner may request the surety company to provide them with a prequalification letter. While this letter is not a binding contract, it can be issued in cases that confirmation is required. This document ensures the owner that the contractor has been approved for a bond, but this is only utilized during the pre-tendering stage.
Securing a Contract Bidder
A project owner will put their building project up for bid, which means that all contractors will have the opportunity to place a bid on the project without discrimination. The project owner is also responsible for selecting the winning bidder. This can be very risky, especially if you are not familiar with the contractor or their monetary value. The surety’s consent is an agreement to bond the contractor, if they receive the winning bid.
For project owners, it is always wise to look for this agreement in the contractor’s bid, because it will seal the deal for a timely project, without risks of financial loss.
Contact SuretyKings Today!
As a project owner, it is imperative to protect your investment. In order to do this, you will want to go ahead and obtain a Surety Consent To Agreement Bond for your upcoming project. Rest assured knowing you will need to go nowhere else. At SuretyKings, you will be able to obtain each and every one of the bonds needed to get the project underway in an efficient manner. Be sure to make contact with our representatives right now!