David Porter is quoted saying, “Litigation is the basic legal right which guarantees every corporation its decade in court.” I find this very true in construction. Even in what appear to be “clear cut” circumstances, cases drag out for years and legal fees escalate. Although it will not eliminate litigation, it is much better to […]
Transitioning any business can be a challenge but maybe even more so in construction. You must decide whether to sell to a family member, key employee(s), or even a third party. What is the firm worth? Is the value in intangible customer relationships, industry knowledge or hard assets such as equipment? How will the new […]
I have said it many times, but construction is a cash intensive business. Few things can make or break a contractor faster than cash flow. That is why retainage laws are so important. The recent Illinois retention law change now has Illinois joining many other states in enacting retainage laws that limit the amount of […]
Often business must make a choice between surety bonds or letters of credit to guarantee their obligations. While there are some similarities between letters of credit (also called an Irrevocable Line of Credit or ILOCs) and surety bonds, there are also serious differences between them. Businesses should understand these differences so they can make betters choices. […]
A Work in Process schedule, commonly called a WIP, is an extremely important report for both contractors and surety bond companies. Contractors can benefit by understanding what surety underwriters are looking for in a WIP report.
Are you looking for a way to increase your surety bond capacity? Surety Bond Capacity is the credit that a surety bond company extends to a Principal, both on a single project basis and as an aggregate limit. Increasing surety bond capacity is important to every company doing bonded work because it allows them to […]
It is said that, “The only man who sticks closer to you in adversity than a friend is a creditor.” Debt can put a stranglehold on a contractor. It creates the need for more volume and profit just to cover interest obligations. It can be difficult to get rid of when times are tough. That […]
An important tool for all contractors and surety bond companies is a bank line of credit or “bank line”. In a perfect scenario, all construction companies would have bank accounts full of cash at all times. Unfortunately, this is not always the case. Construction is a very cash intensive business that typically involves paying for […]
What is backlog and why is it different to your surety bond company? My experience has taught me that in order to be a good surety bond agent, you need to be able to translate. Unfortunately this has nothing to do with those foreign languages classes I took in High School. No I’m talking about […]