How to Increase Bonding Capacity For Contractors

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Often for Contractors, the time comes when you look at the upcoming bids list and wonder how you can qualify for the larger jobs that your competitors routinely go after. Bidding on larger jobs does require some planning. Here are some suggestions on how to increase your bonding capacity while still growing your company’s profitability.

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Topics: Surety

How Succession Plans Impact Your Surety Program & Credit Facilities

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You have spent years building your company to the success it has now, but what happens when you want to retire? Figuring out how to carry on your legacy and transition ownership can be a challenge! This is not a decision you can rush into, and it’s important to understand the different succession options you have.

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Topics: Surety

6 Ways Your Surety Broker Should be Focusing on You!

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As a business owner, your company’s customer service is one of the keys to your success. The service that you should expect from your Surety Broker should be no different. Below are some of the best practices that your broker should be following.

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Topics: Surety Bonding, Surety, Surety Broker

Top 5 Ways a Surety Broker Impacts Your Company

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Maintaining a solid surety program can be vital to your company’s success. It is important that your Surety Broker understands your business, so they can advise you on how to maximize your bond program and the overall profitability of your company. Here are 5 ways your Broker can truly impact your company.

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Topics: Surety Bonding, Surety, Surety Broker

Termination for Cause vs. Convenience

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There may come a time during the course of a construction project when a contractor’s relationship is terminated. There are a number reasons this may occur such as:

  • The contractor’s financial trouble
  • Disputes regarding the quality of the work
  • Failing to adhere to the contract documents, or project schedule
  • Failing to pay trade contractors and material suppliers    

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Topics: construction contract, Surety, termination

How Surety Bonds Work in Default

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A surety bond can cover both an owner and a contractor when there are any issues interfering with the completion of a project. When a trade contractor first gets licensed, they are required to obtain a contractor bond that helps protect customers from unfinished work.

Default is an unfortunate aspect of the construction industry, and it is important to understand why default occurs and what happens when it does.

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Topics: Surety Bonding, Surety, Default

3 Ways Surety Bond Brokers Help Your Business Thrive

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As a Contractor, you are working hard to secure new jobs, lower material costs, and retain good employees. Did you know that your Surety Bond Broker is there to help you build and maintain a profitable construction company? Working closely with your Surety Broker will ultimately result in a stronger bond program for you and help keep your company safe from construction risks. Keep reading to find out how!

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Topics: Surety Bonding, Surety

3 Differences Between Surety Bonds and Construction Insurance

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Working in construction means there are a lot of risks. Workers can be injured, equipment can be stolen, or damages could happen on the project site. Protection from these risks can take different forms. Surety bonds and construction insurance are common examples of such protection; and surety bonds are often confused with insurance.

However, it’s important to understand the two are different. Understanding the differences between construction insurance and surety bonds can help you determine which one you need on your next project.

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Topics: construction insurance, Surety Bonding, Surety

General Indemnity Agreement Definitions & Clauses to Understand in a Construction Contract

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A General Indemnity Agreement (GIA) is a legal document that outlines the Surety/client relationship. As a contractor, it is important to understand the terms and language found in this document. Here’s a quick reference regarding some of the significant terms you may encounter:

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Topics: Surety Bonding, Surety, General indemnity agreement

How Does a General Indemnity Agreement Affect Your Construction Company?

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A General Indemnity Agreement (GIA) is essential in terms of risk transfer, and it is a necessary component of obtaining surety bonds. The GIA is a legal instrument used by surety companies to ensure they are “made whole” by any losses covered under their bonds. In the event a Surety suffers a loss as a result of the contractor’s failure, the contractor must reimburse the Surety for such losses.

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Topics: Surety Bonding, Surety, General indemnity agreement

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