I need a bid bond and have no clue!

[lilolme]

I am a Landscaper. Have been for 13 years. Over the past 2 years have performed as a GM for my employer who has decided to close the business due to personal problems. nOver the past 2 years we have performed on a Gov't contract that I would now like to BID since I was the one who bid it 2 X in the past and was awarded the contract both times and performed in accordance with the contract profitably. So I will have to bid this contract under my new company with no financial history. I have not so good personal credit and i believe it to be around a 400,000.00 bid bond/performance bond. The Gov't agency has the confidence in my ability to perform so there will be no issue if i am awarded the contract. What should I do?

[Surety Guy]

Unfortunately, you will not qualify for a performance bond until you correct your credit situation. Keep in mind, bonds are a form of credit. Therefore, owner(s) personal credit plays a roll in the underwriting, especially for smaller contracts like this.

I recommend going to a credit repair service. Do private jobs to build the business financial statements while you wait for the credit to improve. The other option is to post 100% collateral to the bonding company for the duration of the liability (not a very good option).