Posts Tagged 'Surety'

We are pleased to present below all posts tagged with 'Surety'. If you still can't find what you are looking for, try using the search box.

DBIA Offers Model Bond Forms

The Design-Build Institute of America released a full set of warranty bonds, proposal bonds, and payment and performance bonds specifically for design-build projects.

Putting the 2015 Insurance Market Outlook Into Perspective

Insurance is one of the largest costs for many companies. Read on for some perspective on where the insurance industry stands today and how the current financial situation and underwriting objectives will affect businesses in 2015.  

Why Is Underwriting So Complicated and Thorough?

Surety companies prequalify contractors to guarantee the company has the capital, capacity and character to complete the project. The surety will use its money, up to the amount of the bond, to make the owner of the construction project whole if the contractor does not perform or does not pay its suppliers or subcontractors. To offer that guarantee and stand behind the contractor, a good surety underwriter will understand the complexities of construction accounting and use a thorough underwriting process.

To Add a Co-Surety or Not

The decision to add a co-surety to a company’s bonding program is never an easy one, nor is it usually straightforward. It is important to consider capacities, loyalty, personalities and even feelings.

Surety Market Outlook

The temptation is for businesses to overextend themselves as the economy picks up, but contractors that managed the downturn well and remain disciplined are in a good position to attain surety credit and successfully complete work as economic conditions improve.

Questions to Ask When Choosing a Surety Bond Producer

In today’s complex and competitive world, “doing your homework” is essential to ensuring that professional relationships will produce beneficial results for the company. Performing due diligence is particularly important when searching for a surety bond producer.

Joint Sureties for Larger Projects

Several factors continue to lead contractors and their sureties to co-surety arrangements. Traditionally, multiple sureties on a bond program can provide the contractor with the necessary capacity that they perhaps could not attain with only one surety supporting their bond program. The introduction of an additional surety may be due to the contract price on a single large bond, but over time, ongoing co-surety arrangements usually are tied to the overall aggregate backlog.

Individual Sureties: Navigating the Risks

While bonds written by individual sureties may offer contractors an  alternative to corporate surety providers, these bonds also may pose a risk for the contractor and for the obligee. Recent media reports have detailed the potential risks of obtaining bonds from individual surety  providers, which in those cases were not as financially solid as they  purported to be.

Why Subcontractors Fail and What to Do About It

There are options for companies to mitigate the risks of subcontractor failures. Understanding why subcontractors fail can help fix the problem at the source, as opposed to focusing on too many failure symptoms.

Managing Growth: Why Some Contractors Succeed and Others Fail

Controlled growth is the key to long-term success. Contractors should avoid having too many new areas of focus in their business plans, such as taking on a new type of work within a new geographic territory and adding new, untested people.

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Industry Changes Push AEC Firms Toward Proactive Recruitment
When it comes to recruitment, the AEC industry is grappling with an already...

Gauging the Swing of the Republican Pendulum
As suddenly as the window of opportunity blew open for Republicans by the winds...

Q: What does it mean for your company to be employee-owned?
Employee ownership allows Choate to share long-term success with our employees...

Service Above Self
Two years ago, Gary Neal—an engineer and project manager with MEC Contractors...

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