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 […]

The Miller Act, Performance and Payment Bonds

At some point contractors on Public Works projects have probably asked why a Performance Bond and Payment Bond are required for their work. They may have even heard that it is because of The Miller Act. But what is The Miller Act and why does it affect surety? It may surprise many contractors to learn […]

Surety Bonds and Contingent Payment

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 […]

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 […]

Surety Bond Frequently Asked Questions

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 License Bonds

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 […]

Surety Bonds and Payroll Protection Program

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 […]

Surety Bond Market Cycle and Construction

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 […]

Washington Contractor License Bonds

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 […]

Performance Bond Frequently Asked Questions

In this article, we tackle Performance Bond frequently asked questions. Performance Bonds don’t have to be confusing and we are always available to educate anyone on the process. What is a Performance Bond? A Performance Bond is a type of contract (construction) surety bond. It is a three-way guarantee where the third-party bond company guarantees […]