When it comes to bonding capacity, the strength of a contractor’s financial statement plays a big role. While there are certainly other factors considered like the quality of management and operational capabilities, financial wherewithal is like the oil that lubricates the powerful engine. Without it, things can come to a screeching halt. One of the […]
What do Sureties Exclude from Contractor Financial Statements? Read More »
Securing a grading bond is a critical step for developers and property owners embarking on a new excavation or earthmoving project. The grading bond acts as a three-party agreement between you (the principal or property owner), the public agency requiring the bond (the obligee, like a city or county), and the surety company. The surety
What Happens If You Fail to Meet Grading Bond Obligations? Read More »
Securing a grading bond is a critical step in getting your project off the ground, but the process can seem complex if you’ve never done it before. We believe that with a clear roadmap, this process can be simple and efficient. This guide walks you through the exact steps, from your initial application to the
How to Get a Grading Bond: A Step-by-Step Guide for Developers and Property Owners Read More »
It is common for surety companies to want their contractors to obtain a bank line of credit for their business. To surety companies, a bank line can be the equivalent of financial insurance, giving contractors access to cash when receivables are slow to collect, change orders take time to get approved, or in the worst
Do You Really Understand Your Bank Line of Credit Covenants? Read More »
One of the first questions developers and property owners ask is, “How much will this grading bond cost?” It’s a crucial question, but the answer is more complex than a simple flat fee. The premium for a grading bond is a percentage of the total bond amount, and that percentage can vary based on several
How Much Does a Grading Bond Cost? Key Factors That Impact Pricing Read More »
Balancing Tax Planning and Bonding For many contractors, the end of the year triggers a singular focus on minimizing tax obligations. While this is an understandable objective, it represents only half of a complete year-end financial strategy. An equally, if not more, important goal is the strengthening of the company’s balance sheet to ensure bonding
A Contractor’s Guide to Year-End Financial Strategy Read More »
What Is a Set Aside Letter and How Does It Support the Bonding Process? A set-aside letter is a formal document issued by a lender (usually a bank or financial institution) to the surety through the developer. It confirms that a portion of the construction loan funds will be set aside for a specific subdivision
Set Aside Letters: What Are They and When Are They Required? Read More »
Understanding the Purpose and Requirements of Subdivision Bonds for Land Development Subdivision bonds are a type of surety bond required by local government agencies before approval of a development project. Often referred to as site improvement bonds, improvement performance bonds, and improvement payment bonds, they are required by cities, counties, or other public entities when
The Process of Obtaining a Subdivision Bond: Costs, Requirements & Application Steps Read More »
Every successful contractor comes across the opportunity at some point to make investments outside of their company. It’s common for contractors to want to build wealth and other streams of income beyond their business, but when and how to make those decisions are not always as obvious and sometimes it may conflict with what the
The Best Investment Contractors Can Make Read More »
When it comes to surety bonds, one of the most important business partners you’ll ever choose is your surety agent. But not all agents are created equal. Some operate purely as middlemen; collecting your information, sending it to the surety, and relaying the response back to you. Others step into the role of a trusted
Is Your Surety Agent a Trusted Advisor or Just a Middleman? Read More »
