Oregon Contractors License Bonds

Like many states, Oregon requires contractors to be licensed and to post a valid contractors license bond in order to work in the state. The state deems that anyone doing work for compensation will need a license and a bond. The bond is meant to protect property owners by ensuring that contractors will comply with […]

Performance Bond Costs and Payment Bond Costs

Performance bonds and payment bonds costs vary depending on a number of factors. Many websites will just say 1%-3% and leave it at that without giving contractors insight to improve their rates. This article is a deeper dive into the costs of contract surety bonds including performance, payment and maintenance bonds. Let’s examine the factors […]

Oil and Gas Bonds After COVID-19

Oil and Gas Surety Bonds could be headed for a hard market. Many industries are struggling to deal with COVID-19 (Coronavirus) and the current economic crises. The oil and gas industry has been hit particularly hard. Self quarantine orders in much of the world has led to a significant decrease in demand. Meanwhile, many countries […]

Surety, Contractors and Government Assistance

The Coronavirus (COVID-19) is taking a major toll on the U.S. and World Economies. Construction businesses have been affected in various ways. For some, it’s been business as usual as they are deemed “Essential” and continue to operate on various projects. For others, mandatory shutdowns have created the same hardships felt by many other types […]

Demolition Contract Surety Bonds

If you’ve ever watched a home improvement show, you know how excited the producers get over the demolition. In truth, most demolition contracts are much more complicated than throwing a sledgehammer through some drywall. On a commercial project, it is a heavily planned and important part of the overall job. Often, these contractors need surety […]

Performance Bond and Payment Bond Case Study

Although residential construction is rarely bonded, we are going to look at a case study of what it may look like to provide a performance bond and a payment bond for a high end home build. Our completely made-up couple, “The Bradys” are looking to build a very expensive custom house and will require the […]

Surety Bonds, Banking and COVID-19 Impact

Banking relationships are important to surety bond underwriting. By now we all realize that COVID-19 has changed the economic outlook for 2020. A $2 Trillion Stimulus Package should help the U.S. Economy but the long term implications are unknown and many believe we are headed for a recession. Fortunately, for construction companies, most have been […]

Surety Bonds and OldCo/NewCo Ownership Transition

Perpetuation planning is an important part of surety bond underwriting and it is important for contractors to start the planning process early. One great way for companies to transfer ownership of their company and maintain surety bonding for the new company is referred to as OldCo/NewCo.

Annual Bid Bonds

What is an annual bid bond and how is it different from a standard bid bond? Usually, bid bonds are written on a project-specific basis. A contractor provides a new bid bond to the Obligee (Owner or contractor asking for the bond) along with each bid proposal. You can read more about standard bid bonds […]

Janitorial Bonds and Cleaning Contracts

Janitorial Bonds are often needed to guarantee the cleaning services of large government buildings, educational facilities and even private properties. COVID-19 is taking a dire toll on the world economy and putting a major strain on most businesses. One industry that has seen demand spike, however is the commercial cleaning industry. In fact, one report […]