This conversation explores the difference between insurance and bonding in the context of government procurement and contracting. The expert, Lori Faye, provides insights into the role of a surety bond agent and the importance of bonding for contractors. She explains the coverage and obligations of insurance and bonding, particularly performance and payment bonds. The conversation also highlights the significance of being bond ready, including the preparation of financials and establishing a banking relationship. Good representation is emphasized as a crucial factor in the bonding process. Lastly, the need for a new bond for each job is clarified. In this conversation, the speaker discusses the process and cost of getting bonded for a job. They explain that it is free to get pre-qualified and there are no fees for bid bonds. The speaker also mentions that the pricing for bonding depends on the risk and experience of the contractor. They highlight the importance of capacity, capital, and character in the bonding process. The speaker further explains that surety bonds are job-specific and do not need to be renewed. They also discuss the limitations and conditions of bonding, as well as the ongoing requirements and updates for contractors.
Host
Hosted by the Farmingdale SBDC’s Business Breakthrough | New York Podcast. The Farmingdale SBDC is part of the New York Small Business Development Center (SBDC) network of 20 campus-based centers and outreach offices located across New York State.
Funded in part through a Cooperative Agreement with the US Small Business Administration. Training collaboration does not constitute an expressed or implied endorsement by the NYSBDC and SBA of the presenter(s), their organization(s), and/or their products and services.
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