Tag

payment bonds

Performance Bond Capacity and Healthy Work on Hand

Contract surety bond underwriting is an art however the artist must also be an analyst. Analyzing the financial condition of a bond principal does not admit creativity. In fact, being “creative” with the numbers is a strict no-no. Coupled with… Continue Reading →

Performance Bond Fees Reduced for SBA Surety Bond Guarantee Program

On September 4th, 2018, the Small Business Administration announced its decision to decrease the fees associated with the SBA Surety Bond Guarantee Program (SBG). The fee amendment is the first adjustment in over twelve years. The SBA hope that the… Continue Reading →

Performance Bonds, Some Secrets to Qualifying for Surety Bonds

A frustrating part of being a contract surety bond underwriter is finding oneself obligated to decline a performance bond to a contractor that appears to possess the prerequisite experience, expertise, character and financial strength to accomplish his or her project. The review… Continue Reading →

Proposed Changes in Federal Performance Bond and Payment Bond Forms

On October 19th, 2015, the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) jointly proposed a Rule which will change the standard federal performance bond and payment bond forms prescribed by the Federal… Continue Reading →

Working Capital and Contract Surety Bonding

Of all of the financial components that a contract surety bond underwriter considers when reviewing a performance bond  request, working capital is the the first. Healthy working capital is indicative of a contractor’s ability to service his or her short… Continue Reading →

Performance Bonds, an SIO Primer

Contract Surety Bonding






Performance Bonds Under the Miller Act

This law has been on the books for a LOOOOOONG time and its not news to contractors, CPAs and attorneys who deal with contract surety bonding on a day to day basis.  We came across this very good piece wanted… Continue Reading →

Contract Surety – Tax Returns are NOT Financial Statements

Bottom line, tax returns are NEVER acceptable financial reports when applying for contract surety bonding. Except for very small bond requests a contract surety underwriter will require one more years of proper financial statements prepared by a certified public accountant… Continue Reading →

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