Surety Bonding 101: Understanding the Basics

Nina ConnerBonds

Posted by AP Construction & Surety, AssuredPartners Surety bonding is a crucial aspect of many industries, from construction to finance. But what exactly is surety bonding, and why is it so important? This article will explore the basics of surety bonding and provide valuable insights into how it works. What is Surety Bonding? Surety bonding is a type of insurance that guarantees the performance of a contract or obligation. In other words, it’s a way for businesses to ensure they will fulfill their promises to clients or partners. Surety bonds are typically required in industries where large sums of money are at stake, such as construction, finance, and government contracting. How Does Surety Bonding Work? When a business obtains a …

Developing Enduring Trust in the Construction Risk and Surety Industry

Nina ConnerBonds, Construction

Posted by David Bradbury, AssuredPartners Throughout history, all enduring progress in our world began with a vision, was refined by a concept, and was created based on a solid foundation, teamwork, and a plan to grow and prosper. Along the way, our industry has learned the valuable lesson that interdependent and interdisciplinary relationships, earned trust, and adherence to solid core values, ethical standards, and consistently adopting innovative construction and risk solutions, become the necessary foundation for sustaining success in the 21st century. To that end, contractors today require much more than traditional insurance, surety, risk management and claims services from their broker. The complexities of the present construction environment demand the engagement and services of a professional business partner/broker who will make …

What Determines the Cost of a Surety Bond?

Nina ConnerBonds, Construction

By Sarah Licata for AssuredPartners The price of surety bonds can vary greatly, and many people are unclear of why this is. When determining premium, surety companies are looking to determine the amount of risk there is with an applicant by considering at a variety of indicating factors. Below are some key factors that may be considered when determining bond premium. Type of Surety Bond There are many different types of surety bonds and the type of bond required can vary in price. This is due to the fact that each surety bond guarantees a unique risk, and the level of risk the surety company is taking on is factored into the premium. In short, the higher the level of …

What’s the Difference Between Construction Insurance and a Surety Bond?

Denise GillinBonds, Construction, Risk Management

By Sarah Licata for AssuredPartners Construction insurance and surety bonds both provide different types of protection on a construction project, but a common misconception is that a surety bond is another type of insurance. So, what is the difference between the two? What is Construction Insurance and How Does it Work? What is a Surety Bond and how Does it Work? Click to find out>>>

Not Your Average Bond

Denise GillinBonds, Risk Management

By Lynne W. Cook for AssuredPartners Ironically, there are thousands of surety bonds, but most people are unfamiliar with this three-party agreement that is designed to guarantee a principal’s (the #1 party, which is likely you or your business) integrity, honesty, performance, and financial responsibility, as well as compliance with a law or contract. So, who are the other two parties involved in this three-party agreement and what is it that requires I get a bond? Here are a few of the more common situations that use commercial surety bonds to lessen the risk of loss to the obligee (the #2 party, who is requiring the bond) by the third-party guarantor (the # 3 party, which is a corporate surety …

SBA Bond Guarantee Program – A Great Tool in Increasing Bonding Capacity

Denise GillinBonds, Construction, News

By Nick Newton for AssuredPartners Anyone working in the construction bond industry has seen the scenario where a client or prospect is requesting bonding capacity larger than the standard surety market is willing to provide. While some sureties will utilize tools like escrow or collateral, the SBA Bond Guarantee Program offers an alternative solution, enabling greatly increased capacity for your client. The SBA guarantees 80% of the bond obligation to the surety; 90% for firms that are minority-owned, veteran-owned, and service-disabled veteran-owned, 8(a) and HUBZone certified, and all contracts $100,000 or less. This reduced exposure makes it more palatable for the 42 sureties that participate in the program to offer increased bonding capacity. Click for the program highlights>>>

Trump Considers Private Activity Bonds to Help Address Infrastructure Costs

Joshua EtemadiBonds, Construction

By Ballard Spahr for “JDSUPRA” The White House released a 53-page framework on Tuesday setting forth its legislative goals for rebuilding America’s infrastructure (the Infrastructure Plan). The Infrastructure Plan is intended “to lead to at least $1.5 trillion in investments to rebuild our failing infrastructure and develop innovative projects” through $200 billion in federal funding to promote state and local governmental and private sector investment over the next 10 years. This would largely shift funding for infrastructure away from the federal government to state, local and private sector funding sources. Read the article >>>

Drones With Thermal Sensors Can Detect Hot Spots, Delamination, Moisture Instrusion, Spalling

Joshua EtemadiBonds, Construction

In the U.S., commercial drone use has accelerated across many industries. In the last two years, one million new pilots have registered with the Federal Aviation Administration, and by 2020, experts expect seven million drones to be in use. The 2017 Drone Market Sector Report found that construction (design, building inspection or monitoring) is in the top three uses for commercial drone-based services, behind aerial photography, surveying and mapping, and geographic information systems (GIS). The number of construction and engineering companies using drones is expected to continue to grow, as use cases emerge that offer further business value and competitive advantage for companies with drone programs. Read more here >>>

Surety Agreed to Post Bonds to Cover Subs’ Construction Lien Claims

Joshua EtemadiBonds, Construction

Behind the gleaming glass façade of LaSalle’s new civic centre lies a tangled mess of construction liens and lawsuits still making its way through the courts three and a half years after the building opened to the public. Battling in the civil courts are Piroli Construction, the general contractor on the $13.8-million project, and the Town of LaSalle, as well as several subcontractors who claim they were never paid for work they completed. Tuesday, a Superior Court judge ordered that seven separate lawsuits be dealt with together when and if they ever go to trial. They include Piroli’s $319,000 claim against the town, the town’s counterclaim of $75,000 against Piroli for breach of contract and six construction liens totalling $613,604 naming …

US GDP Growth to Contribute to New Construction in US, Canada

Joshua EtemadiBonds, Construction

Groundbreakings on several mega projects late last year lifted ConstructConnect’s 2017 total U.S. starts to +11.1% versus 2016, more than the +7.9% set out in the previous quarterly forecast. The out-front timing of those mega project starts also caused trimming of ConstructConnect’s expectations for 2018, which is now being projected at +3.0% year over year versus the prior projection of +4.8%. Read more about the forecast >>>