![\"bid-bonds\"](\"https:\/\/bfbond.com\/blog\/wp-content\/uploads\/2005\/10\/Bid-Bonds-300x202.jpg\")
<\/p>\n<\/p>\n
Question: What is the process needed to apply for a\u00a0<\/strong>Bid & Performance bond<\/strong><\/a>?<\/strong> The following outline should be followed in the submission of the first contract bond, or with the first filing of the financial statement; how is the contractor fitted for his business?<\/strong> Question: What are contractor\u2019s financial resources?<\/strong><\/p>\n 1.<\/strong>Obtain a full financial, personal and business. See that it is dated. 6.\u00a0<\/strong>Real estate should be described fully, stating the kind of These help the balance sheet and make the\u00a0Bid & Performance bond<\/a>\u00a0easier to obtain.<\/p>\n For more information about Bid & Performance Bonds<\/a> visit us at www.bfbond.com<\/a>, or call 1.800.921.1008<\/p>\n","protected":false},"excerpt":{"rendered":" Question: What is the process needed to apply for a\u00a0Bid & Performance bond? Upon contacting us, an application will be sent, which will give the necessary information for the underwriter to know who you are and where you are coming from. It is impossible to give too much information regarding a contractor. Everything the contractor … Continue reading Bid & Performance Bonds<\/span>
\nUpon contacting us, an application will be sent, which will give the necessary information for the underwriter to know who you are and where you are coming from. It is impossible to give too much information regarding a contractor. Everything the contractor does should be given to the company. His ability as an estimator can be determined by sending the company the list of bids submitted on all bids. Newspaper accounts of work, pictures are always helpful.<\/p>\n
\n1.<\/strong> How old is he?
\n2.<\/strong> How long has he been in business?
\n3.<\/strong> What kind of work has he specialized in?
\n4.<\/strong> List the three largest contracts he has completed since he has been in business for himself.
\n5.<\/strong> Is he a careful estimator? A) Does he do his own estimating, or does he have an estimator? If so, give the estimator\u2019s experience. B) Who checks these estimates?
\n6.<\/strong> Does he keep careful accounts, does he keep his own books, does his wife do it, or does he have an experienced bookkeeper?<\/p>\n
\n2.<\/strong> Verify statement with the bank; see if the average bank balance
\nover a period of six months or a year approximates that shown
\nin the statement and if it varies greatly, why?
\n3.<\/strong> Stocks and bonds should be listed and described specifically, so
\ntheir value can be ascertained from market quotations.
\n(a) Any unlisted securities should be given special treatment, so
\nthat the underwriter will be able to give them full value in
\nestimating the contractor\u2019s true net worth.
\n(b)If any security is pledge as collateral, this fact must be noted
\nin the underwriting memorandum accompanying the
\nstatement.
\n4.<\/strong> List each account receivable separately. The name of the debtor
\nshould be given and the date when it is due or in the event it is
\noverdue, the date it is expected to be paid. Any receivable that is
\nwithheld until completion of work, or during a maintenance
\nperiod, should be noted, giving the dates that the money\u2019s are to
\nbe released to the contractor.
\n5.<\/strong> The inventory should be divided into two classes:
\n(a) That part of the inventory that can be used in the contract
\nunder consideration. This is a quick asset.
\n(b) All other material that does not have a ready market should be considered as a fixed ( or slow ) asset<\/p>\n
\nimprovements, whether farm land, subdivision, city
\nlots, buildings, dwellings. If the property produces an
\nincome, amount should be stated. Often the contractor owns
\nproperty jointly with a spouse or has real estate in the spouse\u2019s
\nname. If incorporated, corporate asset, such conditions dictate
\nindemnity of spouses needed.
\n7.<\/strong> List all of the larger pieces of the contractor\u2019s equipment. Give
\ntype, model, & capacity of each piece. Advise cost, date of
\npurchase, present value. If the contractor rents special
\nequipment, ascertain from whom he will rent, per deim of
\nequipment.<\/p>\n