Working for most private parties and for the City of San Diego’s Minor
Construction Program you probably won’t need many bonds yet, but don’t
wait till you need one to start lining up a bonding agent and running
your company (and keeping your books) in a way that will allow you to be
bondable when you need it. When you do apply for bonding, the agent will
assess your character, capacity, capital and experience. They will
review several years of business and personal financial statements and
tax returns, bank statements, lines of credit, accounts payable and
receivable, work in progress and references.
What bonds will you need? The
Contractor’s License Bond required for any CSLB license is inexpensive
and fairly easy to obtain. It is a different matter with others bonds.
At some point you will probably also need Bid Bonds, Payment Bonds and
Performance Bonds. Depending on how your business develops and the
contracts you sign, far less often you might also need a: Disciplinary
Bond, Grading Bond, Highway Encroachment Bond, Maintenance Bond,
Monument Bond, RME/RMO Qualifiers Bond, Sewer Connection Bond, Street
Permit Bond, Subdivision Bond, Supply Bond, Union Welfare Bond.
Once again, your Association will be
your prime source for bonding agents and underwriters. Talk to them at
Association meetings, develop rapport and a relationship. Follow their
advice: they can spot winner and loser behavior a
mile away.
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