Best Practices & Surety Requirements
Construction firms must have a financial plan in order to keep up with competition, capture surety support and grow through partnership. In today's market, it is crucial to perfect this strategy as quickly as possible. This is especially true because of the large number of requests for proposals designed to benefit small businesses. However, these RFPs come with risks. Steep liquidated damages and consequential damages leave small businesses with no choice other than blending with larger businesses to maximize surety support.
To guarantee the bonding they need, construction firms must adopt several best practices. The following are some examples of essential best practices:
- Establishing a continuity plan that is funded by life insurance.
- Keeping a certified public accountant who is construction oriented.
- Using job-cost accounting software to track data for financial statements.
- Maintaining ample insurance coverage
And, make sure you build up your Networth and Retained Earnings
By using these practices, construction firms can increase their surety support and company respect. In addition to the surety, this idea also applies to any team partner.