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Indianapolis Contractor License Bonds

  The City of Indianapolis (Marion County) requires contractors to be licensed and to provide Indianapolis Contractor License Bonds. Article I of Indianapolis – Marion County Code Section 875-101 reads, (1) “Any person, partnership or corporation that has entered into a contractual relationship to engage in any construction, land alteration (as defined in section 561-109 of this […]

Kansas Motor Vehicle Dealer Bonds

Like most states, Kansas requires motor vehicle dealers to be licensed and maintain an active Motor Vehicle Dealer License Bond. Kansas statute 8-2404 (a) says, “No vehicle dealer shall engage in business in this state without obtaining a license as required by this act.” One of the requirements to get and maintain an active dealer […]

Account Receivables Impact on Surety Bonds

For many contractors, Accounts Receivables are the largest asset on their balance sheets. Understanding how accounts receivables are viewed by surety bond underwriters is crucial to getting surety bonds and maximizing a company’s surety bond capacity. What Are Accounts Receivable? Accounts Receivables are monies owed to a company for services or goods that they have […]

Arkansas Surety Bond in Lieu of Financial Statement

On July 1, 2020, Arkansas made an important change to their contractor licensing code. The changes allow Arkansas contractor to post a surety bond in lieu of financial statements. Background of the Requirements Per Arkansas Code 17-25-304, contractors were previously required to provide the state either a Reviewed Financial Statement or a Compiled Financial Statement […]

Contractor Work in Progress Report – An In-Depth Review

Work in Progress Reports are vital to surety bond underwriting. Without good reports, it is impossible to accurately predict where a contractor stands currently and forecast the company’s future. Unfortunately, many contractors and surety bond agents do not know how to read these reports or understand the importance of them. You can read an abbreviated […]

Types of Construction Contracts – A Surety Bond Perspective

There are different types of construction contracts and each is viewed differently by contract surety bond underwriters. Understanding the risks associated with each is important of the successful completion of any project. Fixed Price (Lump Sum) Contract A Fixed Price Contract or Lump Sum Contract is the most common type of construction contract. Under a […]

Alabama Motor Vehicle Dealer Bonds

Auto Dealers in Alabama must file a Motor Vehicle Dealer and Designated Agent Bond with the state to obtain and keep a valid license. Alabama continues to grow in the auto industry. In fact, three of the top ten American made vehicles come from Alabama, so it is not surprise that the state requires a […]

Denver Contractor Right of Way Bonds

The City of Denver requires contractors to have Right of Way Licenses and post Right of Way License Bonds when performing work in the public right-of-way or other public property in the City of Denver and County of Denver. A Right of Way Bond is a type of contractor license bond. Right of Ways are […]

Character in Contract Surety Bond Underwriting

Character is backbone of Contract Surety Bond Underwriting. It is one of the “Three C’s” along with Credit and Capacity. However, my experience tells me that is the most important in determining if contractor may eventually have a performance bond claim. Unfortunately, Character is also the most difficult of the 3 C’s to underwrite. So, […]

Texas Superheavy Surety Bonds

Truck drivers in Texas may be required to post a Superheavy Surety Bond. The bonds are also called Oversize Permit Bonds. What is a Superheavy Surety Bond? The bond protects the state highways for damage that may be incurred because of the use of heavy equipment. The vehicle must still have a permit under Chapter […]