Surety Bond Education

So you are new in business as a contractor.  And you would like to be able to perform public works projects. You might ask yourself, “Can I get a bond as a new business?” In order to bid on public works projects you must provide bid security and the safest bid security is a bid bond. Can you qualify for bonds as a new business? Key Items To Qualify For Bonding As A New Business There are three important things that a surety will look at in bonding a new business: Personal Credit Score Prior Experience Financial Strength Personal Credit […]

When you are out of cash, you are out of business. Cash-Flow in your Construction Business – Why positive cash-flow is the lifeblood of your business A contractor should be reviewing their financials monthly or quarterly to evaluate the performance of the company. It is easy to take a quick look at the profit & loss report, see a positive profit and give yourself high marks. But the reality is, you cannot use profits to pay your bills, you can only pay for things with cash. This makes the cash-flow statement the most important report to understand how and when […]

Many cities and counties require a permit bond related to a permit obtained when a vehicle will be used on their roadways that is over the weight limit.  This is referred to an Oversize Permit Bond or also a Superheavy Permit bond. What Is An Oversize Permit Bond? An oversize permit bond is a guarantee provided to the City or County. It is a guarantee for any damage to their infrastructure while operating your over weight equipment.  The amount of the bond varies; however, they are typically $10,000 to $50,000. How Do I Obtain This Permit Bond? The application process […]

Utilizing Subcontractor Bonds for Prequalification and Risk Management Whether you are a paper general contractor subcontracting nearly 100% of work or a prime engineering firm subcontracting work scope you do not self-perform, subcontractors are often extremely important contributors to a project. Because of this, it is critical to perform both prequalification and contractual risk management to avoid problems. Some solid risk management procedures include properly structured subcontracts which include flow-down of contractual responsibilities from the prime contract, indemnity provisions holding the G.C. and owner harmless, minimum insurance requirements for general liability, work comp, and auto as well as safety plans. […]

What is a Work-In-Progress Report and Why Is It So Important for a Construction Contractor? If you are a construction contractor engaging in projects with duration over 12-months, I would highly recommend discussing the merits of using the percentage-of-completion method of accounting with your CPA. Percentage of completion is considered the most accurate method for matching the revenue created through billings and the costs created by work performed. The foundation of this method of accounting is the comparison of total job cost versus cost to date as the project progresses. And we see this information presented on a work-in-progress report. […]

Have you recently been to the Texas Department of Motor Vehicles and been told that you need as surety bond?  You will need a Texas Certificate of Title Vehicle Bond. And we can help you! Why Might I Need A Texas Certificate of Title Vehicle Bond? Perhaps  you’ve lost the title to your vehicle? Or, for instance, you bought a vehicle with no title?  Or perhaps you bought a custom vehicle or trailer that did not have a title? In order to be issued a Texas title you must provide evidence of clear title. One way to do that is […]