SuretyLearn.org, a new website developed by the National Association of Surety Bond Producers (NASBP), offers an online course and a repository of other valuable information to help small and emerging contractors start the bonding process.
NASBP saw a need to provide small contractors with a “head start” by educating them about bonds and how to become bondable, says Joshua Etemadi of Construction Bonds Inc., a division of Murray Securus.
Etemadi and other NASBP members developed the curriculum for the online course, titled “Understanding Contract Surety Bonding: An Orientation Course for Small Contractors.” The seven- chapter course begins with an overview of bid, performance, and payment bonds, and explains how contractors can become bondable. It examines the functions of surety bond producers as well as the importance of contractor relationships with professionals, such as accountants, bankers and lawyers. It also covers construction procurement, and offers governmental resources, such as information about Small Business Administration programs. The course concludes by exploring what happens in the event of a bond claim.
“This is a pretty comprehensive summary of the entire process,” Etemadi says.
“Some contractors spend years trying to become bonded,” Etemadi says. Therefore, the website and course aim to make much needed information about bonding available to contractors so that they can have a successful experience when they sit down in person with a bond producer and dive into the process.
“Sometimes it's just a matter of access and just getting that first 'soft touch,'” he says.
Being bonded determines whether contractors are able to bid on and perform projects that can be game-changing in terms of their business, he says. Bonds also protect taxpayers because they are designed to ensure that projects are finished if a contractor goes into default.
Resources available at SuretyLearn.org include the four-page Small Business Contractor Questionnaire. The form, which can be downloaded at SuretyLearn.org, gathers essential business details about a contractor, including completed contracts and trade references, and other information that is likely needed at the beginning of a relationship with a surety.
The website also provides an introduction to construction risks and tips for avoiding fraudulent bonds.
The online course, provided through a partnership with WebCE, costs $25 and can be completed any time within a year of purchase. For more information and to register, visit
www.SuretyLearn.org.
Posted by staff