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Alaska Contractor License Bonds

Most contractors in Alaska need a valid contractor license and a valid Alaska Contractor License Bond to legally operate in the state. The license bond protects the public by ensuring that the contractor will perform their obligations and operate according to state and local laws. Specifically, Alaska requires the Contractor License Bond to protect the […]

Demolition Contract Surety Bonds

If you have 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 […]

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 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.

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 […]

Arizona Contractor License Bond

An Arizona Contractor License Bond is a surety bond that is required by the state before your contractor license can be issued. The purpose of the license bond is to protect the interests of your customers and to make sure all applicable regulations and laws are upheld. The Principal on these license bonds is the […]

Verifying a Surety Bond

Surety bonds serve to protect the obligee by guaranteeing the performance or payment of an obligation. A valid surety bond can be an excellent tool to protect owners, consumers, contractors, and suppliers. Unfortunately, many people who ask for surety bonds do not take the extra steps to verify those bonds or to make sure they […]

Surety Bonds and the New Changes in Lease Accounting

The Financial Accounting Standards Board (FASB) began to overhaul the lease standard approximately 13 years ago. Educational materials can be found on their website. The new standard became applicable to private companies on December 15, 2019 (which means it is already in effect). Note that this change only affects private companies, as public business entities […]

Bonding Design Build Projects

The most popular method for construction project delivery is still design-bid-build. This is where a design professional and owner create plans for a project before sending the project out to bid. A contractor is then selected to build the project. However, that is changing. According to a study by FMI last year, Design Build projects […]

Funds Control and Surety Bonding – The Good and Bad

Funds control is a term used in surety bonding and can also be called funds administration or just escrow. It usually involves a third party handling the contract proceeds to process payments for bonded contractor. The idea is very similar to a construction loan on the residential side. The process typically looks something like this: