If you are going to be hiring a contractor to help with your construction project, one thing that you probably want to make sure of is that the contractor is financially stable. After all, a more financially stable contractor can be more likely to have the resources that are necessary to complete your project and that the business is not. These are a few tips that can help you tell if you are working with a contractor who runs a stable business.
1. Your Contractor Has a Bid Bond
First of all, one of the first things that you will want to look for when determining whether or not your contractor is financially stable is whether or not he or she has a bid bond in place. As you might already know, a bid bond helps protect you and helps you ensure that your project is completed as it should be and at the price that it is supposed to be completed at. This can protect you. Plus, it can help you feel more confident to know that a contractor has been approved for a bid bond through a bid bonds company since these companies are often quite strict when determining whether or not to approve contractors for their bonds.
2. The Contractor Has Been in Business for a While
Even though a construction company that has been in the business for a while could go bankrupt, and even though brand new construction businesses might be very financially solid, the length of time that the company has been in business can often be a sign of stability. Plus, along with knowing that the company might be more likely to be financially stable, you can also feel good in knowing that you are working with contractors who know what they are doing.
3. Your Contractor is Open and Honest About Finances
A good contractor who does not have anything to hide should be more than happy to show you some of his or her company's financial records, insurance information and more. A good contractor who is financially stable and responsible may even be willing to submit to a credit check to prove it.
As you can see, there are a few things that you can do if you would like to tell if your contractor is financially stable. This can provide you with peace of mind and assure you that you are working with a contractor who is responsible and who runs a legitimate business.