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 »
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 »
Subdivision Bonds and Their Role in Development Subdivision bonds are surety bonds required by local governments (cities, counties, public agencies) from property owners or developers during subdivision development. Also known as site improvement bonds, improvement performance bonds, and improvement payment bonds, they guarantee that the developer or property owner (the principal) will finance and complete all
Understanding Subdivision Bond Costs Read More »
Join Dan Huckabay, President of Commercial Surety Bond Agency, and Will Pfanmiller from Amerisure Surety for an insightful “behind the scenes” look at surety underwriting. This video reveals what might surprise most contractors about how underwriters truly focus when evaluating a bond program. In this discussion, Will Pfanmiller, an underwriter with nearly 20 years of
Behind the Scenes with a Surety Underwriter Read More »
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 »
