In the United States we have a strong culture of growth and pursuit of opportunity. It’s part of what makes our country so great and unique. We live by sayings like, “If you’re not growing, you’re dying.” While there’s some truth to that saying, it can imply growth is always good, but perhaps in construction
4 Signals You’re Growing Too Quickly Read More »
Surety companies hound contractors to build up capital in their company and this is one of the key factors that determine how much surety capacity they will extend. I often think from a contractor’s perspective that it must be hard to understand why sureties focus on a company’s capital so much. If the business is
Case Study: Why Contractors Need Sufficient Capital to Survive and Thrive Read More »
In the construction industry, disputes, delays, and payment issues can quickly escalate into bond claims if they are not handled carefully. Understanding how surety claims work and how contractors can protect themselves is critical for avoiding costly mistakes and preserving business relationships. We recently spoke with a surety claims attorney about her thoughts on common
Understanding Surety Claims, Disputes, and Risk Management for Contractors Read More »
Business owners arrive at the choice of winding down their construction company for a variety of reasons. For some, it may have been the plan all along. They simply have no desire to attempt to continue the company or deal with the challenges that can be inherent with other succession planning options. For others, winding
Winding Down Your Construction Company Read More »
Surety companies commonly want their contractors to obtain a line of credit from their bank to support their bonding program. These lines of credit can act as a form of “financial insurance” from the surety’s perspective to ensure the contractor has adequate access to cash if they hit a bump in the road with a
What Size Line of Credit Do I Need Anyway? Read More »
In this educational video, Dan Huckabay of Commercial Surety Bond Agency (CSBA) explains how different construction accounting methods; specifically Cash Basis, Accrual Basis, and Percentage of Completion (POC), drastically impact the revenue and profit reported to your surety. Many contractors struggle with timing distortions found in cash and accrual accounting, which can inaccurately show significant
Construction Accounting Methods Read More »
For developers and property owners in California, securing a site improvement bond is a standard part of the project kickoff. However, knowing how to efficiently close out that bond is equally critical. Failing to properly exonerate a bond can lead to unnecessary premium costs and lingering liability long after the physical work is complete. Here
How to Close Out a Site Improvement Bond: Steps and Requirements Read More »
For developers and property owners, selling a property with active site improvements requires careful planning. A common misconception is that selling the land automatically transfers or cancels the existing surety bond. This is not the case. If you are listing a property with an open site improvement bond, understanding the transfer of liability is critical
How to Handle Existing Improvement Bonds When Selling a Property Read More »
For developers and property owners, understanding the financial commitment of a site improvement bond is just as important as securing the bond itself. Unlike standard insurance policies, surety bonds have a unique payment and renewal structure that is dictated by rates each surety files with the state of California. Here is a breakdown of how
Site Improvement Bonds: Costs and Payment Structures Explained Read More »
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 »
