Why is it smart to have a Work In Process Schedule?

The importance of a Work in Process Schedule

A Work in Process schedule (WIP) is a great tool for contractors and surety companies.  It helps to document the progress and projected success of a project.  Basically, a WIP is a game plan that is followed through and checked upon, to determine how the project is progressing and when it will be completed.  A well-documented WIP can help the contracting company earn approval for future surety bonds.

Under construction concept design background - orange highway traffic construction cones with white stripes isolated on white

In the construction industry, several things are documented in a WIP.  They are, but are not inclusive or limited to, the contract price, billings to date, costs incurred to date, estimated completion cost and estimated gross profit.  By providing a WIP, the contractor shows competency to the surety bond producer in their ability to complete the job.

In addition, a WIP is important to a surety bond producer because it is a way to be assured that the project is progressing as planned.  Specifically, it helps to monitor profitability, any errors and profit fade and gains that may happen.  For the contractor, a WIP helps to show the financial strength of the company and the competency to complete the project.

Summary:

A WIP is a great communication tool for a contractor and surety bond producer.  It helps the contractor show competency and ability to complete a project and it reassures the surety bond producer of the contractor’s abilities.  For future benefits, a WIP that is on or ahead of schedule can help in future surety bond applications.

We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship.  We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all.  Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.

 

 



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