Past Features

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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2014 NASBP Resource Directory

Ensure that you are connected to the right people; peruse this first publication of the NASBP Resource Directory, which will be published annually in the fall issue of the NASBP Surety Bond Quarterly magazine. The 2014 NASBP Resource Directory contains a geographical listing of the NASBP membership. The following pages 39 to 56 include Members: bond producer agencies; Affiliates: managing ...

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NASBP Annual Meeting focuses on the importance of mentoring and critical industry information

Mentoring was the focus of the first day of the NASBP Annual Meeting & Expo held in April in San Antonio Hill Country. “Take every opportunity to mentor, because it is our future,” said NASBP President Lawrence F. McMahon during his opening remarks. Later that day during a panel on the topic, Bobby Reagan of Reagan Consulting said mentoring, recruitment, ...

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Proving your worth: Surety bond producers provide value to clients and beneficiaries in myriad ways

In a sense, the surety bond industry is a victim of its own success and efficiency. Because it is so effective in prequalifying worthy construction firms for bonds, surety claims are relatively rare, which can lead both construction clients and bond beneficiaries, such as state and municipal building authorities, to question just how much value a bond provides. The bond ...

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