Author Archives: Christine Cusatis

The Devil is in the Details: Bond and Lien Notice Pitfalls

“Did you send your statutory notices?” This question should be familiar to anyone involved in pursuing or defending against a bond or lien claim for nonpayment. Seasoned participants in the construction industry, from bond producers, to surety company personnel, to contractors at every tier, also know that it is just the beginning of the notice inquisition. “When did you serve ...

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An invaluable resource: NASBP’s SuretyLearn.org website enhances emerging contractors’ knowledge of the bonding process

NASBP’s new website, www.SuretyLearn.org, can pay big dividends for small and emerging construction contractors. The site is an invaluable resource that serves as an orientation tool to help small and emerging contractors understand contract surety bonds and how best to position themselves to achieve surety credit. For just $25, enrollees can take a seven-chapter online course that will teach them ...

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Advocacy Update: NASBP Legislative Fly-in sets stage for final push to pass individual surety measure

NASBP continues to build upon the momentum achieved during the NASBP Legislative Fly-in where attendees visited 60 offices representing 19 states, raising awareness of issues such as H.R. 776, the Security in Bonding Act of 2013, and the importance of including bonds in federal policy and legislation relating to public-private partnerships (P3s). Since the June 12 NASBP Fly-in, NASBP, along ...

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The twists and turns of best value selection — and other timely topics

Not all that long ago, almost every construction contract awarded by the federal government was done through formal advertising where the award went to the lowest bidder, provided that it was capable of doing the work. Today, most federal contracts are awarded on a best value basis, that is, selecting the offeror whose proposal offers the best value to the ...

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Surety Bond Guarantee Program changes for the better

As the former comptroller of an 8(a) contractor in Ohio, Peter C. Gibbs has witnessed firsthand the struggles small, disadvantaged businesses experience in the process of securing bonds required for construction contracts. “I definitely saw the issues,” Gibbs recalled, noting that he is mindful of the challenges faced during his days at both Dayton-based Wise Construction Company and New York ...

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Front line underwriting: Choosing a quality construction CPA

We are reminded frequently about the three Cs of surety underwriting and how fundamental these factors are to quality underwriting of credit. But there is really a fourth C that is understood by most as being equally important to account quality. That is the certified public accountant (CPA) firm that issues the audit or review opinion on the customer’s financial ...

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Getting in the weeds: Requirements for marijuana surety bonds

Medical marijuana is currently legal in 23 states and Washington, DC. Recreational marijuana is currently legal in two states (Colorado and Washington). In an effort to regulate the new businesses involved in this legalized yet controversial industry, several states have enacted laws that require marijuana surety bonds as a condition of business licensure. These commercial surety bonds are authorized by ...

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Encrypting email: The first step in securing sensitive information

Computer security in business is a lot like playing hide-and-go-seek with a toddler. More often than not, toddlers will hide behind a curtain with their feet sticking out or under the coffee table with their eyes closed. Like an ostrich with its head in the sand, they think, “If I can’t see them, they can’t see me.” As it relates ...

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It’s finally here: FASB issues new revenue recognition standard

The model for revenue recognition in construction is changing with the Financial Accounting Standards Board (FASB) May 28, 2014 release of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). Since 2008, FASB and the International Accounting Standards Board (IASB) have been working jointly on developing a single principles-based model for recognizing revenue, with a goal of ...

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CPAs Standing in the GAAP

Surety underwriters need adequate, reliable, and uniform financial information, presented according to generally accepted accounting principles (GAAP). Whether the contractor is in Miami or Maui, the surety looks to the acknowledged financial industry expert, the certified public accountant (CPA). The promise made by the CPA regarding a construction company audit, which is set forth by the American Institute of Certified ...

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