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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 […]

Financial Statements and Construction Surety Bonds

Having reliable and accurate financial statements is vital to getting construction surety bonds such as bid bonds, performance bonds and payment bonds. Below are some of the commonly presented financial statements and how surety bond companies view each one. Before we talk about the scope of financial statements that contractors need, let us discuss the […]

Medicare Accountable Care Organization Surety Bonds

Under Medicare, an Accountable Care Organization (ACO) needs a repayment mechanism such as a surety bond. Accountable Care Organizations are groups of hospitals, doctors, medical suppliers, and other healthcare providers that come together to give high quality health care to Medicare patients. According to the Centers for Medicare and Medicaid Services, when an ACO succeeds […]

Retirement Accounts – Why They Do Not Help Surety Bonds

Contractors and other surety bond Principals are often frustrated that surety bond underwriters will not count retirement assets towards their bond capacity. This article explains how surety bond underwriters account for retirement assets and what Principals can do if they want to use these assets for surety bond purposes. What are Retirement Assets? Retirement assets […]

Performance Bonds for Asphalt Pavers

Asphalt Pavers can have a significant need for performance bonds. They are considered heavy contractors and the nature of their business presents unique risks and opportunities for surety bond companies. Here are some considerations for providing construction bonds to asphalt contractors. Asphalt Contractors May Be Light on Working Capital Most surety bond companies are working […]