What is in a single word? Well a lot if you are a contractor expecting to be paid for your work. Contingent Payment Clauses are very important to surety bond underwriters and they should be to contractors as well. Receiving payment is vital for every for-profit business. This is especially true in construction because contractors […]
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 […]
In this article, we answer some of the most frequently asked questions about surety bonds. Surety bonds can be confusing, and MG Surety Bonds is here to make the process easier. What is a Surety Bond? A surety bond is a three-party guarantee between a Principal (party making the promise) the Obligee (party receiving the […]
Nevada contractors must put up a Nevada Contractor License Bond to operate in the state. This is a surety bond that guarantees that the contractor will comply with state laws and regulations. A contractor who violates those obligations may have a claim made against the license bond. This protects the general public by making funds […]
The Paycheck Protection Program has had a significant impact on contractors and their surety bonds. However, many contractors have questions about how this may affect their bonding by bringing on additional debt. Many good construction companies have been conditioned to avoid interest bearing debt when possible. However, the circumstances surrounding COVID-19 are extremely rare and […]
It may surprise some that the surety bond market cycle does not follow the general economy exactly. It is important for contractors and all users of surety bonds to understand how the cycle works and what could happen to the surety bond marketplace in the future. Competitive Surety Market Conditions The chart below shows the […]
Contractors in the State of Washington are required to be licensed and have a Washington Contractor License Bond. Each contractor must register with the Department of Labor and Industry (L&I) to perform work. They must also post a Washington Contractor License Bond and evidence of insurance to protect the public. What Does a Washington Contractor […]
Municipal bankruptcies could have a negative impact on contractors and their surety bonds. COVID-19 has presented challenging times that are unprecedented in modern society. Unfortunately, those impacts are being felt by everyone. Unemployment is skyrocketing as businesses are forced to shut down for extended periods of time. These impacts are also having a major detriment […]
A Fuel Tax Bond is a specific type of commercial surety bond used by fuel suppliers, sellers, mixers, etc. It is a requirement to receive licensing for this industry. The surety bond provides a guarantee of payment for fuel taxes.
Oil and Gas Surety Bonds could be headed for a hard market. Many industries are struggling to deal with COVID-19 (Coronavirus) and the current economic crises. The oil and gas industry has been hit particularly hard. Self quarantine orders in much of the world has led to a significant decrease in demand. Meanwhile, many countries […]