Surety Bond News

Construction work is full of risk being there is so much that can go wrong. A big risk relating to construction work involves the threat of deceitful contractors. Some contractors will go to great lengths just to get their foot in the door for a specific job and then wind up performing negligent work; surety bonds are helpful in these cases because they guarantee that work will be completed properly. Unfortunately for a church in Alabama, a phony bond was used for their renovations and plunged them into a costly lawsuit.
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You may wonder why surety companies are so strict and by the books when it comes to writing surety bonds. When a surety company is considering a company for a bond, they need to determine the stability and dependability of the company because the surety is backing every bond they write. Should a company do the surety wrong by not following the rules, causing a claim and mysteriously disappear after the fact, the surety will have to pay the price; this is what recently happened to a surety costing them thousands of dollars.
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When a surety company is considering a contractor for bonding, they are strict with the owner’s credit but they are even more critical when reviewing the business financials. The quality and presentation of the financials play a big role in regards to a contractor getting strong surety support.
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Times are tough when it comes to job opportunities. Our economy isn’t in its prime, and with more and more individuals looking for work it makes for a competitive job hunt; it’s no different for construction contractors looking for public construction projects which often require surety bonds. One thing that can put a contractor one step ahead of the competition is to provide professional financials to the surety companies who hold the key when it comes to providing bonds. (more…)

There is still a long, winding road of recovery to be traveled for our economy. With the potential of a federal government shutdown, it’s obvious some sacrifices had to be made to keep air in the lungs of the government. Congress was forced to make cuts to various segments of the American economy; however the Construction Industry was hit the hardest and in turn adversely affecting the surety bond sector as well. (more…)