Earthmoving contractors do much more than just providing equipment. They also deliver essential services that promote site development. From excavating your land to installing drainage facilities, earthmoving contractors can help you complete your project on time and under budget.
After identifying a company to work with, you will likely sign a contract that outlines the equipment and services to be delivered. Contracts are legally binding, but they don't, in themselves, ensure quality services. For example, what happens if an accident were to occur and result in damage to your site? Or what happens if, after work is completed, you feel like the job doesn't meet your expectations?
This is where surety bonds come in. Working with an earthmoving contractor who is bonded can insulate you from property damage or performance fluctuations. Here's how surety bonds apply to the contractor you choose and the success of your project.
High service standards
Earthmoving contractors who are bonded are more likely to meet high standards of service. This is because any work they carry out is backed by the terms of their surety bond. How does it work? If the contractor were to deliver substandard services, you can make a claim against the bond and receive compensation for losses incurred.
Think of the bond as a type of insurance that protects you from any performance fluctuations you may encounter from an earthmoving contractor. Because construction work is a high capital venture, having unexpected fluctuations in performance may significantly affect your project. Bonded contractors stand behind the reputation of their work by providing an assurance that you won't experience losses from underperformance.
Protecting your site from damage
Whether your earthmoving contractor is digging trenches on your site or providing cranes for lifting heavy items, there is always the risk of damage occurring. Damages are often the result of accidents and, in rarer cases, negligence.
A bonded contractor can help you minimise losses from site damage. In the event where damage occurs due to the work being done by your contractor, you can make a claim against the bond for compensation. Bonded contractors reduce project delays and insulate you against losses.
Absorbing you from liability
Whether you're building a commercial structure or designing a road, you may be liable as the project owner to the actions of subcontractors. Subcontractors are specialised companies that may perform various essential tasks on site. By working with a bonded contractor, you won't have to incur losses from the negative actions of subcontractors (such as lack of paid wages, accidents caused, etc.).
