Reasons For E-Bonding
In keeping with the growing trend toward automation, the construction and surety industries continue to explore the use of technology to enhance the level of service provided to their clients and to streamline their administrative processes. In the construction/surety world, the tendering phase lends itself very well to automation for several reasons:
- The time pressures involved in the bidding process where even one minute late can mean disqualification. An automated approach where documents are delivered instantaneously can alleviate the last-minute pressures of a tender closing.
- The laws of tendering require strict, error-free compliance with the bid documents. Automated creation of the bid bond and other tender documents can significantly reduce the chance of errors which can lead to a bid being declared informal.
- The ease and economy of transmission: Not only is delivery easier, faster and “greener”, it is far less expensive and can reduce or eliminate mounting courier costs.
As is the case with any major change, the shift from paper to a digital environment is not without its challenges. What’s more, the unique nature of the surety product and process magnifies the impact of some of these issues and adds a few more.