Why Your Earthmoving Contractor Should Have a Surety Bond

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.). 

About Me

Construction Contractors: Dealing with Problems

Hello, there! My name is Debbie Jones. Welcome to my new blog which is all about the problems you can face if you own a property. Last year, I moved into a place in Sydney, Australia and almost immediately started having problems. The electrical system began to fail and I didn't know why. I called in an electrical contractor who examined the wiring and discovered that there was a leak in my roof which was allowing water to drip onto a fuse box. I called in a roofing contractor who advised that I have the entire roof replaced. I had this work carried out and then had the walls of the property reinforced in order to provent further problems.

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