When the Advanced Payment and Surety bonds are needed

Jun 2, 2016 by

When the Advanced Payment and Surety bonds are needed

When the Advanced Payment and Surety bonds are needed

The advance payment bonds and surety bonds are usually needed when there is construction, real estate development, facilities management and support services. It is the contractor who will be getting the advance payment bond and will guarantee that they will be settling or paying the cash advance paid by contract owner. The bond is ensuring that they (or the contractor) will be performing their obligation based on what the contract mentioned. If they will fail, then the advance payment bond will make the principal settle the advance on what is based on the contract. The surety companies are present and can help when it comes to advance payment bonds and surety.

Based on the website drsbonds.co.uk they can provide quotes once requirements are being submitted. In all other surety companies there are certain requirements to be submitted to get the advance payment bond done. You will need a bond application or request form, complete contract’s copy, there should be also details of how they got the contract. Is it through bidding process or negotiation? There should be explanation on the difference. The bond form should be in readable and also acceptable language and in case that the owner does not have this, surety company is the one to provide the bond form.

Surety is the one that will help contractor once the contractor missed their responsibility mentioned in the contract. But this only happens when the contractor failed, if they did not, absolutely the bond will be met and there is no repayment that the contractor needs to do. Surety bond means that they are guaranteeing the contractor’s ability to perform the task. There is a certain amount that will be paid by the surety in case that the contractor missed their responsibility.

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The website drsbonds.co.uk is a good surety company that can help contractors. It is important that there is surety since it is behind the advance payment bond. In the advance payment bond, contractor is promising that they will be doing their obligation by meeting the requirements that are included in the bond. In short the advance payment bond and surety are connected to each other. They can work together to help the contractor with needs, especially in meeting their responsibility or obligations. The owner in case that the payment is not fulfilled in case of contractor’s failure, they can bring the issue to the court so they can get the payment back and continue on their project.

The advance payment bond and surety are instruments to make sure that there will be documentation of what will be done in case that the contractor was not able to complete what is inside the bond. The surety company has an important role when it comes to this, even bank and or the insurance company as well. That is the reason why there are requirements that need to be completed before getting the advance payment bond, to make sure that the contractor will be doing their best to meet what is needed by the bond.

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Common Causes of Business Failure

Jun 2, 2016 by

Common Causes of Business Failure

Common Causes of Business Failure

A lot of businesses seem to be working well in their first year but suddenly fail and disappear without trace. The causes of business failure can range from a simple mishap to complex faulty decision making. Here are some of the most common causes of business failure that you must avoid in your first year of operations.

Failed Partnerships

As a business owner you strive hard to grow your business not just for you but also for your employees and the families that they are working for. It only makes sense that whenever you find suitable partners that supports this vision it is often easy to jump into the decision of entering into business partnership. When these partnerships fail due to the failure of one party to do their responsibilities, costs are incurred. The performing party also suffers losses that may even cause the business to lose its assets and eventually close down. Consult drsbonds.co.uk on how to avoid these loopholes, and secure your business from failed partnership costs.

Inefficient contractors

When you hire someone to do a part or a fraction of your business you expect them to perform at certain levels of efficiency and quality. A lot of factors can cause contractors to underperform and under-deliver. When they do the whole business becomes affected. Orders can be delayed and potential buyers could be lost to more efficient competitors. Experts at drsbonds.co.uk can help you go through bond protection to secure your business from these types of losses.

failure-215563_960_720 Poor Marketing

Businesses may have the best products out there but nobody knows they exist or where to buy them. Without an effective marketing plan your business will be unable to tap its full potential. It will remain confined to the small network of people. If a product is really good, it will pick up sales by word of mouth. Some businesses suffer sustainability issues waiting for the word of mouth effects to kick in. You can speed up the process with a little push, and marketing serves as they push your business needs.

Bad Product Quality

Some products heavily advertised on TV, on news prints, and on billboards disappear without a trace. Ever heard of Google Glass? It was heavily advertised and hyped up but because the product did not meet certain expectations it ceased to be produced and sold incurring more losses than gains. This is the reason why investing on product quality is the core element of business success.

depression-1250870_960_720Bad Business Culture

Culture refers to the way you do things. If the business culture in your operational areas between your employees and contractors is bad this will reflect and create a negative impression to your customers. Keep in mind that maintaining courtesy and keeping stress levels at a minimum goes a long way in building your brand.

There are many reasons why businesses fail. Some of these reasons are difficult to quantify. The one thing that is sure though is failure to prepare for the unexpected always leads to failure. Preparation, therefore, is always key to business success.

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