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Surety Industry Makes Progress in Reaching Goal of Digitized Bonding

ISTOCK.COM/MONSITJ A group of bond producers and surety companies and other stakeholders, through The Institutes RiskStream Collaborative—an industry-led consortium, is working to unlock the potential of blockchain technology across the surety industry. The surety professionals among these companies know that one of the biggest challenges is to digitize the execution of a bond, which is often still a manual undertaking ...

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Cryptocurrency and Money Transmitter Bonds

BuISTOCK.COM/ISMAGILOV By Amanda Miceli of Chiesa Shahinian & Giantomasi PC The legal treatment of cryptocurrency is rapidly developing, and, as a result, impacted industries should routinely monitor legislative and agency developments in order to remain in compliance. Specifically, sureties executing money transmitter bonds, which guarantee that a money transmitter conducts business in compliance with the law, including, in some cases, ...

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10 Tips to Improve Construction Site Project Communications

ISTOCK.COM/ALISSARUT By Richard Reizen and Patrick Johnson of Gould & Ratner LLP In the iconic scene from the classic movie Cool Hand Luke, the role played by character actor Strother Martin famously complains to the character played by Paul Newman: “What we’ve got here, is failure to communicate.” Just like the consequences faced by Newman’s character for that failure, the consequences ...

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Pathways to Professionalism—Surety Practitioners Discuss Success Strategies, Skills, and Training

ISTOCK.COM/MASTERSERGEANT Surety professionals need an amazingly diverse skillset. First, they need financial and accounting skills; experts can teach those number skills. Less dependent on rote learning are “people skills”—intangibles that successful professionals rely on daily in serving clients and stakeholders. In such a relationship-based industry, those people skills are essential. Producers and their colleagues must forge connections and build trust ...

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Why Private Construction Jobs Are Requiring Surety Bonds, Too

ISTOCK.COM/IVELINRADKOV By Jacqueline Greenberg Vogt Public construction projects almost always require surety bonds. As a type of insurance, bonds protect the government if the wheels come off a project, or the contractor absconds with the funds. Indeed, bonding has been mandatory on federal public works projects since 1894, with the passage of the Heard Act, which was superseded in 1935 ...

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Watch Your Step: Avoiding False Claims Act Violations from Limitations on Subcontracting and Performance of Work Requirements

ISTOCK.COM/NADIA_BORMOTOVA By Matthew Feinberg Members of the government contracting community are familiar with the contracting opportunities offered specifically to small and disadvantaged businesses through the U.S. Small Business Administration’s (SBA) 8(a) Business Development, Mentor-Protégé, and various set-aside programs (such as those available for service-disabled veteran-owned small businesses (SDVOSB) or women-owned small businesses). The availability of small business and other set-aside ...

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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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