Author Archives: Kristine Buchanan

How to Get Your First Bond, Part 1

Sponsored Content from Old Republic Surety Posted by Erik Mueller This is Part 1 of a two-part article on acquiring your first bond.  Be sure to read Part 2 of Mueller’s advice for acquiring your first bond. Are you ready for your first surety bond? Maybe you’re bidding on your first public project, or the financiers of a private job require ...

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How the Cost of a Contract Bond Is Determined

Sponsored Content from Old Republic SuretyPosted by Todd Taylor, AFSB, CPCU What goes into determining the cost of a contract bond? Here is a basic introduction for surety professionals. Common Contract Bonds These are some of the most common contract bonds: Bid bond—surety consents to provide performance and payment bonds, if the contract is awardedPerformance bond—guarantees performance according to contract, ...

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Choosing a Bond Producer for the Long Run

Sponsored Content from Old Republic Surety Posted by Mike Sanders, AFSB The agent you select for your surety bonds has a tremendous impact on your ability to get a project bond approved. Bond producers are key partners in getting that first bond written as well as in growing your business over time as you go after larger projects. A good ...

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The Difference Between a Balance Sheet and an Income Statement

Sponsored Content from Old Republic Surety Posted by Shayne Albine We often get questions about financial statements and why they are important to the bond underwriting process. Underwriters will generally ask for several key financial documents, including a balance sheet and an income statement. These financials help us determine the liquidity of a business and its ability to generate income. ...

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Contractor Materials Shortages and Materials Price Inflation

Sponsored Content from Old Republic Surety Posted by Mike Sanders, AFSB We all know well that the availability and prices of many of the materials used by construction contractors have been affected dramatically since the start of the Covid 19 pandemic. Many materials are difficult to find, and when they are found, they are at extremely high prices as compared ...

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The Art of Saying No

Sponsored Content by Old Republic SuretyPosted by Darrel Lamb, CPCU, AFSB A few years ago one of my contractor clients wanted to bid a $24mm project. The project was about three times bigger than anything they had built to date, but the project made a lot of sense to them and after hearing the plan, it made sense to me, ...

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Planning, the Pandemic and Price Increases

Sponsored Content by Old Republic SuretyPosted by Rich Sghiatti In November 2020, I had an opportunity to reflect on what 2021 might look like for the construction industry. You can read my prognostications in Construction Executive magazine and see whether my observations about supply and labor shortages, price increases and market demand have held up. It’s been a topsy-turvy period for contractors, ...

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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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How to Take Your Business to the Next Level and Increase Your Bonding Capacity

Sponsored Conent from Old Republic Surety Posted by Wayne Messick, AFSB Are you ready to grow your business? Maybe you’d like to bid on larger projects. Or the owner of your current job likes your work and wants to hire you for something bigger. How do you get to the next level? It’s not as difficult as you may think ...

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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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