Are you trying to get your first independent contract that involves demolishing an old building? Before moving forward, you should consider investing in a surety bond, available through companies like Service Insurance Company. The reason why is because you will have financial security in the event that the obligee fails to pay for the work that you provide. If you are working on the basis of getting paid after the work is complete, a surety bond will also allow you to prove to the obligee that you have the financial resources to complete the work. Take a look at this article to learn more about signing a demolition contract without falling into a bad situation.
1. Show the Obligee That You Are Covered by a Surety Bond
Being that you are trying to get your first contract as a demolition contractor, it is important to make sure the obligee is confident in your services. You must be able to prove that you are able to afford the equipment that is needed for demolishing a large building. If you invest in a surety bond, it will be the evidence that you need to assure the obligee that you have the financial means for the project. A surety bond is also great to have because it can protect you from a financial loss in the event that the obligee takes you off of the project without a good cause. The extent of coverage that you will get from the bond depends on what you pay for, as each contractors policy can be different.
2. Pay Close Attention to What is Written in the Contract
If you are provided the opportunity to take on the demolition project, you should turn your attention to the contract. Do not sign a contract that you don't completely understand. Ask a lawyer to review and explain the contractor if it is necessary. It is important for you to have a clear understanding in regards to the specific type of work that the obligee expects you to complete. You must also know when a payment for your work is expected, as well as what can forfeit you being paid.
3. Hire a Team of Sub-Contractors to Assist with the Work
When you are ready to begin demolishing the building, hire sub-contractors to assist. The reason why is because the work will be completed faster, which can help with building your business reputation as an independent demolition contractor. Make sure that each of the sub-contractors has a proven track record in the demolition industry.