When forming a construction business, few people realize that it is almost as hard to exit the business as it is to get started in the first place. It makes sense when you think about it, by the time you are ready to exit your business, you have built decades of important relationships. There is […]
Figuring Out the Best Way to Exit Your Construction Business Read More »
If you’re like most owners of construction companies, preparing for your untimely death or disability is not high on your list. Afterall, there are proverbial fires to put out, jobs to finish, bids to submit, and taking the time to plan for what is an unpleasant and hopefully unlikely event to think about does not
What Happens to Your Construction Business if You Die Tomorrow? Read More »
It used to be very difficult to provide surety bonds to ESOP construction companies, but fortunately that has changed. Part of that is due to the ESOP industry maturing and the structures of ESOP’s becoming much more manageable for surety companies to underwrite. Surety companies have also gained a lot of experience over the last
How ESOP Construction Companies are Underwritten by Sureties Read More »
Given the limited market for third party buyers of construction companies, ESOP’s present an attractive alternative, but not every company is a good candidate for an ESOP. Fortunately, there are some basic factors that you can evaluate to see if it will make sense for your company. Do you have the key management? Perhaps the
Is an ESOP Right for Your Construction Company? Read More »
In our latest video we are going to look at what a work in progress schedule is for contractors. Surety companies require these forms to be completed with the application for bid bonds and performance and payment bonds typically when the bonding needs are over about $1 or $2 million. In this video, we’re going
What is a Construction Work-In-Progress Schedule Read More »
Contractors often believe the risks included in performance bonds fall solely on surety companies. However, the interests of the contractor and the surety are aligned, because whatever the contractor is obligated to by way of the contract, so is the surety through the performance bond form. Conversely, by indemnifying the surety against loss, the contractor
3 Risks Contractors Should Look for in Performance Bond Forms Read More »
Many contractors are probably familiar with the term “percentage of completion basis accounting”, and you may have first heard it from your surety company asking you to change your accounting from either accrual or cash basis to percentage of completion basis. A lot of contractors simply have their CPA make the appropriate adjustments, but they
What Is Percentage of Completion Basis Accounting for Contractors? Read More »
In our latest webinar, industry experts Dan Huckabay, president of Commercial Surety, and Ali Salamirad, partner at SMTD Law, provide insight into the ripple effect of recent bank failures and the importance of preparing your business for potential economic impacts. The webinar covers the relationship between construction financing and bank failures, lessons learned from the
The Ripple Effect of Bank Failures on the Construction Industry Read More »
Construction bid bonds are very rarely called. In fact, in our agency’s history, we’ve only seen three bid bond claims. When you consider we issue more than 3,000 bid bonds each year, that’s not very many claims. While that’s positive for contractors, it can also give a false sense of security that bid bond claims
What Happens When a Construction Bid Bond is Called? Read More »
When contractors submit a bid bond request to their surety company, it is often early on in the bid process, and you may not have much insight into the true cost outside of whatever the project owner’s estimate is, assuming one is provided. That in itself makes it difficult to know what amount to submit
Best Practices for Handling Bid Bond Increases with Your Surety Company Read More »
