Contract Surety

A Contractor’s Guide to Overcome Unforeseen COVID-19 Struggles

06.11.2020

The coronavirus pandemic has created serious disruptions across all industries. Construction contractors and skilled tradesmen and women are doing all they can to keep their businesses afloat during difficult economic circumstances. Below are important strategies to help contractors keep their businesses strong in a post-COVID-19 domain.

Beware supply chain disruptions. The coronavirus has rocked supply chains across the globe, with myriad companies juggling higher rates of disruption than normal. From closed warehouses, to late shipments, contractors must be aware and ready for muddied logistics following the pandemic. To stay prepared, strengthen relationships with alternate suppliers, craft more flexible budgets, and search for local material suppliers to diminish logistics snags.

Prioritize worker safety. Contractors are required by law to abide by social distancing rules and regulations touted by state, federal, and local health officials. To meet safety expectations, be sure to keep workers at a six-foot distance while on and off job sites, require masks to be worn by workers, request self-isolation from those who were exposed to the virus, forbid the sharing of equipment, take worker’s temperature prior to entering a job site, and reduce the amount of subcontractors working at a single job site.

Stay financially agile. It can be hard to meet obligations with financial disruptions at play. That’s why contractors should have a sizable cash reserve to help meet their most vital financial obligations if revenue suddenly vanishes. Take the time to improve your financial strategies as well, like automating invoices, financing any purchased supplies and equipment, and minimize future purchases to items that are absolutely critical.

If you need to comply with new state requirements, we’re here to help. If you are a public contractor anywhere in the United States and need to secure bid & performance and payment bonds, Colonial Surety Company provides a direct, digital way to secure a surety line of credit. You can apply online today and we will review your submission. Once approved, you gain access to The Partnership Account® for Contractors. When you are a partner, we give you power of attorney and corporate seal to issue your own bids bonds, direct access to the underwriter, lines in writing, complete security, and control over your business. Apply now.