Embarking on a major renovation of your marina or starting the process of building a new facility is filled with a variety of risks. Maximizing your opportunities to limit those risks will help ensure the successful completion of your project.
The Port of L.A. required its marina builder to carry a performance bond on their project at Cabrillo Way Marina to help reduce their risk exposure during construction of the marina.
One of the ways to help minimize your risk as an owner or developer is to require your general contractor or marina builder to carry a performance and payment bond. Your contractor’s ability to be bonded at a favorable rate is a good indicator of the company’s financial security as well as their ability to perform the required work.
When issuing bonds, the surety’s primary objective is to determine whether or not the contractor, or in this case the marina builder, has the experience, the resources and the capacity required to complete the project they are proposing to build. As a result, sureties become very skilled at determining the validity of a company’s financial statements in regard to performance and delivery and are well acquainted with the qualities or characteristics that set one builder apart from another.