Maryland Individual Surety Law To Expire

The Engineering News-Record released an article on April 15, 2014 announcing that a Maryland law that allowed individual sureties on state projects will expire on September 30, 2014.  Click here for the article.  Once the law expires, Alaska will be the
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Bonding Contracts for Construction of Cell Towers

We’ve recently received many calls about bonding a services agreement for a large wireless provider for the construction of cell phone towers. Some require a performance and payment bond, other companies require only a payment bond. While there are a
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2014 Mergers & Acquisitions Construction Trends

Each year FMI Capital Advisors, Inc releases  what’s titled. “Mergers & Acquisitions Advisor Trends in the Engineering and Construction Industry.”  Whether or not a construction company is interested in buying or selling a business, the report provides excellent construction industry
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Ohio Auctioneer Surety Bond Renewal Date June 30

The Auctioneer Bond has a common renewal date of June 30. the cost of this surety bond is as low as $125.00 per year, subject to approval of the underwriting company. The State of Ohio requires auctioneers to be licensed
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Illinois Roofing Surety Bonds Renew June 30

The Illinois Roofing Surety Bond (Limited or Unlimited) has a common renewal date of June 30 and is required to maintain a roofers license in the state. Limited roofing license means a license made available to contractors whose roofing business is
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Another Surety Takeover – Bond Saves Tax Payers Again

Unfortunately, it seems to be a common theme of late; a contractor defaults on a public works construction project. In Crowley, TX a surety had to takeover a portion of the an important project, concrete work at Crowley’s Veteran’s Memorial
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Appraisal Management Surety Bond Now Required in South Dakota

An applicant for issuance or renewal of an appraisal management company registration shall file with the Department of Labor and Regulation a surety bond with one or more corporate sureties authorized to do business in this state of twenty-five thousand dollars. ($25,000). The
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Performance and Payment Bonds for a Project With a Large Bid Spread

In public works there is an old joke; What is the definition of the low bidder?….The company that made the biggest mistake.  OK, we have told that joke before but we are just bond people, we don’t have a large
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Federal Contractor Agrees to $928k settlement on False-Claims Allegations

A Salt Lake City government contractor agreed to a $928,000 settlement to resolve false-claims allegations related an SBA program for disadvantaged business.  (Click here for the full article).  This all stems around the SBA’s mentor-protégé program, a program that has
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Another Example of a Performance Bond Saving Tax Dollars

On March 13, the Edmond Sun of Edmond, OK ran this article about a surety takeover on a public works project.  The original contractor was awarded a $1 million contract to reconstruct, rewire, and rehabilitate certain portions on the Northwest Development area
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Performance and Payment Bonds for a New Company

Last week we blogged about how to increase bonding as a small business (click here for the blog), but we received some calls from businesses that are either new, or new to bonding, who want to know how to simply get a
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How to Increase Bonding as a Small Business

Contractors large and small know that to live in the public works arena, bonding is the lifeblood.  As such, a contractor can only grow as its bonding does which can sometimes be a catch 22.  A bond company will increase
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$668 Million Set aside for Louisiana Coastal Projects – Get Bonded!

According to Construction Executive, the Louisiana Coastal Protection and Restoration Authority released its 2015 fiscal year plan which includes $668 million for flood protection projects.  Click here for the entire article. While the article breaks down the details of funding,
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Sacramento Kings and Turner Construction Contractor Outreach Meeting

Yesterday, the Kings and Turner Construction hosted a Contractor Outreach Meeting at the Robertson Community Center to celebrate a win for Kings fans and to discuss potential contracting opportunities for local business.  Both the fans and businesses came out in
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Florida Motor Vehicle Dealer Bonds Expire Soon

The State of Florida requires all motor vehicle dealers to provide a $25,000 surety bond. the bond has a statutory renewal date of April 30. Now is a good time to re-shop your bond.  The surety companies that underwrite this type of
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Immigration Consultant Surety Bond is Just 1 Requirement in CA

The State of California requires any person who acts as an immigration consultant to be licensed with the State. As part of that licensing, the applicant must provide a $50,000.00 Immigration Consultant Surety Bond.  there are however, many other steps to
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Merriwether & Williams – The Bond Assistance Program

Qualifying for performance and payment bonds is determined by what surety professionals call the three “C’s” of underwriting.  Those include a contractor’s Credit, Capacity, and Capital.  Sometimes businesses are lacking one or more C’s making bonding a little more difficult. 
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Performance Bonds 101 – Net Worth

One of the key balance sheets components surety underwriters will look at when considering a company for surety credit is Net Worth, also referred to as Shareholders Equity.  The technical definition of Net Worth is simply a firm’s total assets minus its total
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Denver Area Minority Contractor Opportunities

Denver Mayor Michael Hancock signed a legislation to improve opportunities for minority and women-owned businesses, specifically contractors.  The bill goes into effect on April 1, 2014 which essentially raises the goals for percentage of contracts going to minority and women-owned
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Performance Bond Basics – Working Capital

Working Capital is one of the primary underwriting considerations of the surety industry when considering an account for performance and payment bonds. Working capital is defined as the difference between current assets and current liabilities. Current assets are the most liquid of
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Performance Bonds for City of Sacramento On-Call Services Contracts

We’ve written about some of the ins and outs of job order contracting (JOC), or task order contracts.  The City of Sacramento has several contracts referred to as On-Call Service contracts.  These contracts are no different than job order contracts,
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More Bogus Perfromance Bonds Surface

Yet Another Fraudulent Bond Case – How to Avoid We blogged a few weeks ago about how to help prevent fraudulent bonds, and yet we have another example of a bogus bond that probably should have been avoided.  From an
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Waiving Payment Bond Costs Tax Payers Over $32,000

The Iowa Department of Transportation now owes 3 subcontractors over $32,000 due to a Supreme Court decision ruled on January 31, 2014.  Why?  Because the subcontractors were not required to post a payment bond on a public works contract. The
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Los Angeles City and County Grading and Subdivision Bonds Explained

With subdivision starts on the rise, we in the bond world usually see an uptick in subdivision related surety bond requests such as grading permit bonds, subdivision performance and payment bonds, offsite improvement bonds, completion bonds, etc. This is especially true
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Oregon DMV Dealer Surety Bonds Explained

The State of  Oregon requires all vehicle dealers to be licensed. The bond is not in place to protect the dealer, but is in place to protect the “people” from the dealer. The actual wording in the bond is as
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California DMV Dealer Surety Bonds Explained

All car dealers in California have to be licensed and to become licensed all dealers must post a surety bond. The definition of a dealer is explained in section 285 of the California Vehicle Dealer Code and is: For commission,
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Performance Bonds for Private Owners – Theft of Services

Thanks to the Miller Act, all public projects above $100,000 requires the contractor post a performance and payment bond.  In fact, many states have a lower threshold on bond requirements, called Little Miller Acts.  It’s essentially because of this act
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California Car Wash Surety Bonds to Increase to $150,000

In  not so subtle pro-union legislation, CA bill 1387 was signed into law on October 11, 2013 and became effective January 1, 2014. Registered car washes in California will be required to post a $150,000 surety bond, versus the former
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Construction Outlook is Good – Get Bonded Today!

While qualifying for performance and payments bonds is mostly based on the contractor’s creditworthiness, macroeconomic factors can and do play a role from credit tightening or softening, amount of work in the pipeline, access to capital, among others.  As a
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Low Cost Surety Bonds for Pest Control Companies in California

Surety Solutions Insurance Services, Inc.(Surety1) announces new low rates for the California Pest Control Operators Surety Bond. Effective January 1, 2014 for new applicants and July 1, 2014 for existing certified operators, the bond requirement has increased from $4,000 to
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