Author Archives: Kristine Buchanan

Surety Bond or Letter of Credit: What’s the Difference?

Sponsored Content from Old Republic Surety Surety bonds and letters of credit (LOCs) both provide risk management for construction or development projects. To know which is appropriate to use, it helps to understand their differences. A surety bond is a three-party agreement among: The principal, who is the primary party who’ll perform the work (i.e., the obligation).The obligee, who is the party ...

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Expect the Unexpected: The Importance of a Solid Continuity Plan

Sponsored Content from Old Republic Surety Posted by Scot Albrinck, AFSB Growing up in a family that owned an electrical contracting business, I was always surrounded by a strong work ethic and dedication to the business. While my role was focused on pulling wire, bolting on stadium light pegs in the middle of winter, and sweeping floors, the heartbeat of ...

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Underbilling: Why Your Surety Has Concerns — and You Should, Too

Sponsored Content from Old Republic Surety Posted by Rich Sghiatti Underbilling occurs when work you’ve completed hasn’t been billed or costs you’ve incurred haven’t been reimbursed. Nearly every contractor has some underbilling from time to time. But underbilling can hurt your cash flow and eat into your profits. Worst case: You may actually lose money on a job if you ...

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Translating the Top 5 Most Cringeworthy Surety Conversations

Sponsored Content from Old Republic Surety Posted by Scot Albrinck, AFSB As bond managers, we always look for ways to help our agents, contractors and project owners better understand surety. It can be a pretty arcane subject, and not everyone who has a hand in the process is familiar with bonding. But that doesn’t mean we still don’t get the ...

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Personal Indemnity: ‘What? You Want My Spouse to Sign?’

Sponsored Content by Old Republic Surety Posted by Wayne Messick, AFSB We often get questions about the indemnity part of surety, especially regarding spousal indemnity. Contractors often understand the need to obtain a surety bond if the owner of the project requires it, but an indemnity agreement can come as a surprise if they’ve never been bonded before. It helps ...

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Why Work in Progress Schedules Are So Important

Sponsored Content from Old Republic Surety Posted by Erik Mueller “Can you send me a WIP that goes with this statement?” “Can you send me the fiscal year-end statement with WIP?” I’m sure you’ve heard those questions or some variation of them too many times to count. But have you ever wondered why we specifically ask for a Work in Progress schedule ...

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How to Prequalify a Surety — and Why It’s So Important

Sponsored Content from Old Republic Surety Posted by Todd Taylor, AFSB, CPCU The number of surety companies represented in any region can make the task of prequalifying or differentiating among them challenging to say the least. Many bond agents and brokers have access to more than 30 surety company markets, and there can be important distinctions between each of them ...

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Underbilling: Why Your Surety Has Concerns — and You Should, Too

SPONSORED CONTENT FROM Old Republic Surety Posted by Rich Sghiatti Underbilling occurs when work you’ve completed hasn’t been billed or costs you’ve incurred haven’t been reimbursed. Nearly every contractor has some underbilling from time to time. But underbilling can hurt your cash flow and eat into your profits. Worst case: You may actually lose money on a job if you ...

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How Sureties and Contractors Can Mitigate Performance Defaults

SPONSORED CONTENT FROM Old Republic Surety Posted by Alan Pavlic No one likes it when a job goes south. The owner loses money, subcontractors don’t get paid, and there can be costly litigation. In short, it’s in everyone’s best interest to prevent a performance default and get the job back on track. From a surety company’s perspective, mitigating a potential ...

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Maintaining Surety Credit in Times of Growth and Transition

SPONSORED CONTENT FROM Old Republic Surety Posted by Erik Mueller Most construction companies in the U.S. are owned by an individual or the members of a family. Yet, according to the Family Business Alliance, only 30% of family-owned businesses survive into the second generation, and just 12% remain viable into the third generation. That means when owners are ready to retire, ...

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