The construction industry has consistently been the backbone of the Canadian economy with a thriving market. Construction employs around 1.4 million people in Canada and generates about $141 billion to the economy annually, accounting for 7.5% of the GDP.
These are surety bonds, and they play a critical role in the commercial construction industry. With the rising developmental projects in Canada, owners and contractors are collaborating for seamless and timely completion. But you can lay a guarantee by signing up for performance bonds Canada for your business. Hence, you need a top-notch bond broker in Canada who can assist and guide you through the surety process.
Here are a few tips you must consider for picking the right surety bond broker in Canada.
Check for Financial Background and Information
While looking for brokers for signing performance bonds in Canada, you should prioritize their industry knowledge. It is vital to know if the broker or the agent has a comprehensive understanding of the industry and the financial market. Moreover, they should also be well-versed with your company’s financial information. It lets them advise you accurately to enhance your financial position. A financially sound surety broker or company can successfully back your bond obligation when in need.
Reliable Bond Broker
With tons of bond brokers flooding the Canadian construction industry, only a handful may have specialized knowledge of the contract bonds. So, what do you do?
Start with research on their history working with companies, whether they have worked with reputable surety companies and contractors in the past.
Furthermore, brokers who are part of NASBP (National Association of Surety Bond Producers) are considered highly professional and experts in the industry. So why not pick them instead of the ones who are inexperienced.
Another tip to contemplate before employing a surety bond broker in Canada is to probe about their industry experience. They should understand and be well-informed about the ins and outs of the construction industry.
Seasoned bond brokers can deliver prompt solutions and advice in crisis and potential risks. Working with multiple clients over the years gives them an upper hand over those new to the industry.
Look For Expertise
A construction bond such as a performance bond may have several layers. Apart from industry experience, the surety brokers must have expertise in construction. Proficiency in the construction business is a plus since they will have an in-depth knowledge of the surety industry.
Your surety bond brokers should be your guide and ally who help you through complicated construction bonds. Stick to open and clear communication with them to understand their take on different aspects of the bond. A suitable broker will show curiosity in knowing more about your business and offer you personalized packages and programs that benefit you.
Hire Licensed and Trusted Brokers
Another tip before hiring a bond broker is to ensure if they are licensed and authorized to operate in your state. Only licensed and certified companies by federal bodies can issue a surety bond in Canada. A licensed bond agent or broker gives you a sense of confidence to count upon them with any confidential information regarding your company.
Many major bonding companies in Canada may specialize in your industry and even offer exceptional service. Also, the Canadian construction industry is highly competitive with ever-growing needs. However, it is up to you to determine which factors should be prioritized for helping you deal with the performance bond agreement.