When you're overseeing a major construction project, it can be difficult to try to keep all aspects of the bid process in line. It's important to find the lowest reasonable bid in order to minimize unnecessary expenditures, but if you end up accepting a bid that falls through, you might find yourself tied up in delays and litigation for much longer than you'd prefer.
Providing yourself with an extra layer of security can be important, and the bid bond process can assist with that goal. Below, you'll find a guide to some of the advantages of using bid bonds that should give you the confidence you need to move forward with total security.
Guaranteed Pricing
One of the most difficult challenges you might face when overseeing a construction project is coping with changes in the pricing structure. Evolving circumstances may dictate a little flexibility, but when your budget is based around a specific bid, you have the right to have that bid honored.
The use of a bid bond will lock in the financial obligation for both sides and guarantee that the work performed won't create huge budget overruns. This can allow you to keep more capital available for other projects and will also help guarantee you can avoid frustrating disagreements with your contractor.
Security For Suppliers
It's important to remember that the financial relationships involved in your construction project aren't merely between you and the contractor. There are also entanglements to consider when it comes to material and equipment suppliers, and disagreements on that side of the operation can bleed over into your concerns.
Bid bonds cover the full scope of the project. This can allow you to lock in equipment and materials early in the process rather than having to scramble for them later, and can also help guarantee that you won't be forced to cope with delays simply because of minor squabbles between unrelated parties.
Clearer Timeframe
Delays are the bane of any construction project, so it's essential that everyone involved has the proper incentive to take actions to avoid them. In the case of a project that utilizes bid bonds, that incentive comes from the locked in pricing structure that prevents any benefit from overruns. This can give your contractor the necessary push to guarantee that all work is completed on time, and can give you the satisfaction of knowing that you'll be able to enjoy your new structure as soon as possible.
