We hear from contractors all the time that are unsure of whether their bonds will get approved or how long it will take. This uncertainty makes it tough to plan or run your business, but many contractors tolerate it because they don’t know what is “normal” or what they should expect. This article will shed […]
Delays with Bond Approvals: The Causes and Cures Read More »
Every once in a while, a project owner or general contractor will take a long time to award a project. If the project award drags on, this uncertainty can leave the contractor that bid the work in a tough spot for several reasons. The contractor may not want to bid other work in fear of
Understanding Bid Bond Expiration: How Long Are They Valid? Read More »
In California there are approximately 110 Native American Tribes, so it isn’t surprising there is a lot of Tribal work opportunities for contractors. While Tribal Nations can be great owners to work for, there are some unique risks that contractors need to be aware of. We will address the risks most important to surety companies
Tribal Work Risks and Considerations Read More »
What if the surety market changed overnight, and it became much harder to get bid, performance, and payment bonds? It’s not something most contractors think about, because the surety market has been relatively stable for the past 20 years. That can make it easy to take for granted that it will always be that way.
Potential Changes in the Surety Industry Read More »
We are asked often for our opinion about where the construction market and general economy stand, and it’s part of the reason we came up with this report. What’s interesting about this year is our answer really depends on which part of the market we are addressing. This inspired the title for this year’s report
2024 Construction Market Outlook Read More »
California tends to have a lot of very large projects, and with very large projects often comes significant liquidated damages. Surety companies generally consider liquidated damages greater than $5,000 per day to be fairly significant, but we see many large projects that have LD’s of $10,000 to $30,000 per day, which creates significantly more exposure
Limiting Exposure to Liquidated Damages Read More »
The definition of “Risk” is the chance of loss, and in construction this can apply to many areas. I’m going to focus on financial loss on a single projection or financial loss to the company as a whole. When discussing a “chance of loss”, we are really talking about probabilities. The probabilities or “odds” in
We created this snapshot to give you a quick idea of how the California construction market is doing halfway through the year. We use data from Construct Connect, one of the largest project data sources in the United States, along with our proprietary data from our more than 300 contractor customers in California. While there
2024 Midyear California Construction Market Snapshot Read More »
Watch any news program these days, and there is still a lot of talk about inflation and interest rates. Half the experts seem convinced inflation has been extinguished and the other half seems to doubt it is really gone. The Slope of Inflation I’m not sure anyone really knows the answer, including the Federal Reserve,
Is Inflation Behind Us? Read More »
Each year our agency puts together a report to look at trends of profitability, backlogs, and overall competition in the California construction industry based on the proprietary data of our contractors. This data is unique to our agency, and to our knowledge, there is no other report published quite like it. Riding the Rollercoaster One
2023 Construction Market Outlook Read More »
