2021 Executive Insights: Surety Bonding & Insurance
Industry experts share their thoughts and advice on mitigating risk, the "Three Cs" and navigating bonding in a post-pandemic world.
Surety Bonding
Surety Defenses: Overpayment of Contract Funds and Cardinal Change to Contract
Two common surety defenses to limit its exposure are overpayment to principal defense and cardinal change to the contract defense.
How to Maximize the Power of Surety Credit
To maximize surety credit, prepare in advance for bond underwriting by looking at year-end financial statements and try to reduce items with a negative impact on surety-adjusted working capital.
Using Lien and Bond Claims to Secure Project Payments
When disputes arise on a construction project, mechanic’s liens and payment bonds ensure that rights are protected, remedies for non-payment exist and that they are enforceable.
Contractors on Private Projects Also Need Bonding
Surety bonds can protect private construction project owners from contractor default, but general contractors should consider them as protection against subcontractor default.
Sharing Company Culture to Strengthen Surety Relationships
While financials and performance are key to surety credit, the strength of the organization’s culture drives expense management, talent management and long-term strategic planning.
The Insurance Market: What Contractors Can Expect in 2021
Due to increasing losses and poor investment returns, insurance rates for most lines are increasing, capacity is declining and underwriters are being selective on which accounts they will even consider.
Surety Bonding Would Provide Peace of Mind for P3s
Due to the lack of funding, many public entities are considering public-private partnerships, also known as P3s, as a way to finance and complete necessary infrastructure projects.
