Cleaning jobs in large corporate offices and hotels are usually contracted through a thorough evaluation and bidding process. In most cases, the client may require that a cleaning business be bonded or in simpler terms the business must have a surety bond to guarantee the client that they will complete the job based on the client’s specifications should they win the contract. To get bonded, a cleaning business will have to submit an application for surety bond at a bonding company and pay an annual premium based on the value of the bond to maintain the bond year to year. The costs are somewhat substantial but since you can land more contracts and opportunities through this bond, then the investment should be worth it. Here are some tips on your cleaning business can get bonded.
- Look for a reputable bonding company. The Internet is probably the best place to find a reputable bonding company. Executing a quick search using Google with the keywords “Bonding Company” should net you some bonding companies that are online. Visit their website to figure out what they offer and the process on getting a bond for your business. However, some companies like www.jwsuretybonds.com, www.merchantsbonding.com, and www.cbic.com are great choices since they have been in the business for quite awhile now and have a reputation of backing the bonds they offer. You may check with people that you know as well since getting referrals is another way to ensure that you choose a reputable company. You can check your existing insurance provider that provided you your general business liability coverage as well since they may offer bonds as well. In any case, make sure to list a lot of options for you further evaluate the best company to go with.
- Evaluate your options. Once you have a shortlist of companies to inquire bonding service from, consult each one and ask them to submit a proposal or quote regarding bonds for a cleaning business. Preferably, you will want to have a bond with an amount usually required by most clients so it may be wise to find out the figure for this. In any case, have them submit a quote for the desired bond value. Normally, most companies will charge a premium of 1 to 3 percent of the total bond value. For instance, if you are getting a bond at a value of $20,000, then your premium will range from $200 to $600 a year. Anyway, evaluate each quote and choose the best one for your cleaning business.
- Finalize the bond. Once you choose the bonding company to go with, they will supply you with a contract and require payment of the annual premium. Sign the contract and pay the premium. Once that is done, your bond will become valid. Bear in mind, that some paperwork will be needed to process your bond before the contract signing in payment so make sure you accomplish those first. It is usually an application form and showing pertinent documents about your business such as registration papers and permits.
As soon as the bond becomes valid, go ahead and start bidding for the jobs you want. If the client requires a larger bond value that what you have, you can always ask your bond provider to increase the value and pay the additional premium. Bonds can be upgraded or downgraded with relative ease.