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Practical Advice to a Surety to Protect Collateral in Bankruptcy

ISTOCK.COM/PATPITCHAYA By Elliot Scharfenberg It borders on the cliché to begin an article by musing that suretyship is among the most ancient contracts known to law and that undertaking a suretyship contract has been fraught with risk ever since its inception. While this is undeniably true, I assume that everyone reading this article is no stranger to these well-trodden platitudes. ...

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Contractors Can Help Ensure Their Success by Heeding Five Lessons Learned from the Pandemic

ISTOCK.COM/RELIF By Robert S. Posner of Grassi As the construction industry emerges from the COVID-19 pandemic, new realities continue to impact contractors’ plans and strategies. Unlike past years, however, contractors in 2022 have the advantage of the many lessons the industry has learned over 2020 and 2021 as it battled the impact of pandemic losses and overcame unique challenges. To ...

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Five Industry-Unique Concepts in Navigating Construction Company Work-Outs—Scenarios that Allow a Contractor in Default to Meet its Debt Obligations

ISTOCK.COM/VECTORINSPIRATION By Kevin Hamernik of BKD Working with a company struggling or bordering on the edge of insolvency is difficult enough, but any seasoned turnaround professional who has worked with construction companies knows this industry presents additional, unique challenges. Why? Although there are many reasons, this article will focus on examining five major elements. 1. Lien Impacts In general, contractors, ...

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A Contractor’s Line of Credit Can Affect the Firm’s Bonding and Banking Relationships

ISTOCK.COM/GUSTAVOFRAZAO By Richard P. Higgins of McCarthy & Company Building a solid foundation for good relationships with sureties and bankers is important for every contractor, impacting growth and profitability. Sureties and bankers rely on your credit history, payment record, credit score, and performance when making a credit decision. Sureties also factor the three C’s into their decision to issue a ...

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Three Recent Cases Strike Down Liquidated Damages Clauses in Settlement Agreements: Trend or an Aberration?

ISTOCK.COM/ZOLNIEREK By Adam M. Tuckman of Watt Tieder Hoffar Fitzgerald LLP Beginning more than one century ago, owners and contractors generally have adopted the convention of including liquidated damages in their contracts to fix potential liability for delay (and other losses) at the inception of the project. The proliferation of liquidated damages clauses in modern contracts can be attributed to ...

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NASBP Partners with SFAA to Offer Free Online Course – Introducing a Surety Bond Education Curriculum With Personality

Learning about the ins and outs of qualifying for surety bonds as a construction contractor may sound like a dry course of study, but contractors may find those expectations defied when they tune into the new Contractor Bonding Education and Mentoring Program for construction firms. It’s a sleek, engaging, and streamlined production of The Surety & Fidelity Association of America ...

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Extending the Value of Surety—NASBP’s 5-15 Committee Trains New Industry Leaders

When visionary business leaders take action, they always have their eye on the future. The problem is that it takes broad industry knowledge and experience to gain the perspective for making the best decisions. If the marketplace always stayed the same, that wouldn’t be the huge deal it is today. But with change the only real constant in today’s world, ...

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Revised IRS Construction Industry Audit Technique Guide: Factors to Consider

IMAGE BY VECTORHOT By Zachary Hunter and Jeff McCarthy of Marcum LLP Much has changed on the landscape of tax accounting for construction contracts and contractors in the past few years. The revised Construction Industry Audit Technique Guide issued by the IRS in 2021 contains the most recent set of updates.  Following are some highlights of some of the most ...

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New Civil Cyber-Fraud Initiative Uses False Claims Act to Enforce Cybersecurity Requirements

PHOTO BY THE LIGHT-WRITER By Moshe Broder, David Bitkower, Brandon D. Fox, Shoba Pillay, and David B. Robbins of Jenner & Block The Department of Justice (DOJ) announced recently a new Civil Cyber-Fraud initiative that will use the False Claims Act (FCA) to enforce government contract cybersecurity requirements. The initiative will be led by the Fraud Section of the DOJ ...

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Many Contractors Remain Unaware of the Refundable Tax Credit for Employee Retention

ISTOCK.COM/GGUY44 By Bobbi Hayes and Larry May In March of 2020, Congress passed the CARES Act to provide businesses and individuals with various forms of financial relief to help them withstand the COVID-19 pandemic. For businesses, the CARES Act became almost synonymous with the Paycheck Protection Program (PPP) loan program. Many construction companies applied for and received PPP loans last ...

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