As part of our recent theme of blogs “Performance Bond Toolkit,” phasing a project is another tool that can be utilized. Phasing the project into smaller more manageable pieces can help a contractor secure the performance bond they otherwise may not be able to obtain.
What is phasing? Phasing of a project really means splitting one contract into two or more separate contracts. Like a lot of tools in a contractor’s performance bond toolkit, phasing is not the answer for every contractor or project, and only makes sense in the right scenario. When does it make sense?
If and when a contractor is faced with a scenario when they cannot obtain a bond, they should consult their bond agent for options. At Surety 1 we have over 40 years of combined experience structuring contracts to help contractors obtain performance bonds. Contact us at [email protected] for a consultation.