Has your surety started asking more questions? Do they act more nervous? Many sureties are like that subcontractor who is losing money on other jobs; they can make life miserable for you. Because of their losses, many sureties have dramatically raised their underwriting standards along with their rates. Some sureties have severely limited job sizes [...]
Have you ever had a “Slow No?” You give your bond request to the bonding agent and he says he’s “working on it,” and so you think you are OK. Several days go by, and you call again, and he’s still “working on it”. A few more distressing days go by and you start to [...]
The obligees who purchased the bonds win. The subcontractors and suppliers who relied upon that payment bond when they took the job win. When the surety pays claims, (and they paid out billions) they are paying out money that the obligee would otherwise have to pay. Even with the increase in price, bonds are a [...]
With the Federal Sequestration, and budget cutbacks, most departments of the Federal Government are reporting lower spending for construction this year, especially on smaller projects. Reports from our federal contractors around the state seem to confirm that. There are a few exceptions as NASA transforms itself to become a place welcoming to private industry. Federal spending seems [...]
According to court documents, the rare spider was a key factor in putting Ballenger Construction Co. out of business. Ballenger had been in business since 1937, but they were struggling after oil and fuel costs came in over budget which made jobs far more expensive than originally bid. While working on the highway underpass in August, 2012, the workers [...]
The nation's construction unemployment rate fell to 9.8% in June with the addition of 13,000 jobs according to the Department of Labor. The industry has added 100,000 jobs in the past year, which is a 3.4% increase. Across all industries, the nation added 195,000 jobs as the private sector added 202,000 jobs and public sector shrunk [...]
A New York appellate court recently affirmed what we have long known; that an owner is not a beneficiary of subcontractor default insurance. In that case, the developer used a construction manager on a Manhattan hi-rise project. The construction manager had obtained Subguard coverage, but this didn't protect the owner when the largest subcontractor, the [...]
Bond premiums are normally very straight-forward, but there a couple of things you should look for to avoid surprises. If a job is going to run longer than 12 or 24 months, most sureties will charge an extra amount of 1% per month for each month over their given time limit. If the warranty period [...]
According to the Florida Department of Transportation, your firm very likely qualifies as a disadvantaged business enterprise. You may be thinking that you are not a member of a minority, or you are not a female, but that doesn't matter. The FDOT runs a race and gender neutral DBE Certification Program. "Neutral" means that race [...]
According to Berkshire Hathaway's Businesswire, construction in Florida's metropolitan areas rose 39.8% in the second quarter of this years compared to the same time a year ago. Forbes Magazine listed three Florida Cities in the top twenty cities in the nation with the most new construction. This information was compiled by McGraw-Hill Construction data. There was [...]