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Credit: Crain's

December 2022

Why Construction Firms Must Embrace Digital Bonding and Surety

Construction firms may be able to cut down on time-consuming offline work and enhance workflows by automating the manual process of contract bidding and approval.

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    Digital bonding is now far more frequent than it formerly was because to the introduction of digitization to the surety market in the construction sector.

    This process was sped up by the pandemic. However, there are still economies to be gained because surety brokers frequently issue performance bonds by hand. Despite this, it's simple to envision a bright future for digitalization in the construction sector because it stands to gain significantly from the time and money savings.

    Why adopt certainty digitalization?

    Players in the construction sector have a lot of reason to use a fully digital, paperless bonding platform. According to a McKinsey and Company analysis, the globe would need to invest around $57 trillion in infrastructure by 2030 if it wants to keep up with GDP growth. The construction sector will need to completely embrace digital solutions that can assist alter organization, productivity, and project delivery in order to satisfy this demand.

    Without a specific digital solution that supports an effective bidding and bonding process, managing a portfolio of projects can be difficult due to the complexity of project planning. Advanced analytics for intelligent asset management and digital collaboration, including migrating to paperless projects, are two important areas that can aid them. Construction companies can start gaining from the simplicity and effectiveness of using technology in surety and underwriting management systems by using a cloud-based software-as-a-service (SaaS).

    Consequently, business is moving more quickly for companies who embrace the digitization transition. Businesses may cut down on time-consuming offline work and enhance workflows by automating the manual process of contract bidding and approval. With the help of the program, carriers, producers, and their clients can enjoy the advantages of automated underwriting, increased sales productivity, workflow management, document functionalities, and the freed-up time to concentrate on strategic marketing, forecasting, and portfolio management. Businesses, the insureds, can communicate with brokers in real time thanks to a digital platform.

    Applications in the real world
    Imagine being on a construction site and suddenly needing to verify a number on a contract. You can instantly log in and review all of your documents if you're using a cloud-based digital bonding platform because it is available from anywhere and lives in the cloud. Digital business transactions decrease paperwork and the possibility of mistakes. You can be sure that your contracts are accurate throughout the underwriting process because information is often only entered into the digital system once, making it unlikely that errors will be introduced at any point in the process.

    With the proper partner and platform, you may reap numerous benefits from embracing digital transformation with a bond management system. Whether it's because of a worldwide epidemic, problems with the supply chain, or a lack of workers, the construction and surety sectors have both adapted in unpredictable times. Resilient construction and assurance. It's fascinating to observe how we modify technology to our industry's advantage and how we'll do so moving forward.

    From: Property & Casualty360