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 […]

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, […]

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 […]