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 […]
Service contractors have a tough time when it comes to surety bonding. They fall into a gray area for most surety bond companies. Are they contract surety or are they commercial surety? How do they go about getting a bond?
With surety bonds, collateral is typically used for protecting the surety bond company from a possible loss. Here, you can learn about the collateral used for surety bonds, along with some pros and cons of each.
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 […]
Do you own a business in the oil and gas industry? If so, you may know about oil and gas surety bonds. Regardless of if you have past experience acquiring these types of bonds, or if this is your first time, the information here may prove beneficial along the way.
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. […]