In today’s economy, comprehensive financial data comes at a premium. It is increasingly necessary that contractors provide updated financial information to bonding companies in order to maintain a solid working relationship. Many bonding companies feel an increased need to pressure contractors for necessary banking documents, balance sheets, income statements and more.
This is certainly not conducive to a mutual understanding between parties of what type of bonding is needed and even what is accessible to a contractor. Without up-to-date documents, bonding companies are challenged to determine if contractors are qualified for specific types of bonds initially. What’s more, when lacking quality prepared financial statements, working through a bond market becomes increasingly difficult for contractors.
Determining qualifications for projects cannot be based on how a contractor performed in previous years or on the sizes of previously conducted projects. No contractor wants to be left without the proper bonding tools because they depended too heavily on outdated financial information.
Contractors must remember that their relationship with a bonding company or representative is a highly important one that should be maintained throughout the course of their work. Properly maintaining this relationship with the most recent financial documentation makes the workflow easier for all parties involved.
Current financial data goes a long way in determining the success of a contractor. Bonding companies rely on correct information to be able to cater to the individual needs of each contractor, so a little financial cooperation can go a long way in an unstable economy.