Contract Surety

Project Design Problems Cause Cost Overrun

09.05.2019

Design plans can cause a contractor’s project cost to go over budget all by themselves. Even if proper time and resources are spent on estimating the scope of the project as well as its cost beforehand if the project design itself is defective, the budget doesn’t stand a chance.

Design problems and deficiencies such as poor design, inaccurate design, or just an unfinished plan are common enough in projects that it’s been estimated that they cause nearly 40% of all construction project related disputes and issues. These disputes can include incomplete or unsatisfactory work, which is an inevitable conclusion if the entire plan is flawed.

Using the correct software can help alleviate some of the dangers of flaws in the design as a digital model incorporating real-time changes into the plans can help avoid human error.

Changing the scope of work or project from the contractor’s initial expectation can also lead to design deficiencies. All changes may not be figured into each area of the plan, leaving that area deficient. Software using real-time updates can help in this regard.

Issues like these are why contractors are required to obtain bid, payment, and performance bonds in order to guarantee that they can take on the project at the amount they bid, pay for all subcontractors and materials, and perform the project satisfactorily.

So where can you purchase bid and payment/performance bonds for a project?

Colonial offers the direct and digital way to obtain bid and payment/performance bonds as well as any other surety bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print your bond from your office. It’s that simple!

Colonial gives you an easier way to manage your bid and payment/performance bonds online. Having your single and aggregate limits in writing allows you to update your work on hand and adjust your bonding capacity in real-time.