June 8 – 10, 2014 Demystifying Surety, the Product and its Value Joanne Brooks Vice President and Counsel The Surety and Fidelity Association of America.

Slides:

Advertisements

Similar presentations

1. Among the most important advisors to a construction firm are: –Professional surety bond producer –Knowledgeable construction/surety attorney –Construction-oriented.

Advertisements

Among the most important advisors to a construction firm are: –Professional surety bond producer –Knowledgeable construction/surety attorney –Construction-oriented.

Funds administration, also referred to as funds control, funds disbursement, funds management, and escrow, is a method that sureties use to offset the.

INFORMED DECISIONS SURETY BONDS OR BANK LETTERS OF CREDIT 2013.

Failure Rates: Source: BizMiner Building, heavy/highway, and specialty trade contractors In BusinessSurvivorsFailure Rate 853,372 (2002) 610,357.

CONTRACT SURETY BONDS: UNDERSTANDING TODAY’S MARKET 2013.

Among the most important advisors to a construction firm are: –Professional surety bond producer –Knowledgeable construction/surety attorney –Construction-oriented.

Building a Solid Surety Relationship. Surety Bonds Vs. Traditional Insurance Surety BondsInsurance 3-party2-party Risk transfer Duty to obligeeDuty to.

CONTRACT SURETY BONDS 101: THE BASICS OF BONDING 2013.

SURETY BONDS Managing the Risk of Contractor Default.

1 U.S. Small Business Administration Surety Bond Guarantee Program for Small Businesses.

By: Scott Mahorsky. A surety bond is a written agreement where one party, the surety, obligates itself to a second party, the obligee/owner, to answer.

Foreign Guarantees. Guarantees Contractual Obligation Irrevocable Obligation Sum of Money Non-performance.

The Surety and Fidelity Association of America (SFAA) BONDING ASSISTANCE FOR SMALL AND MINORITY CONTRACTORS “New Opportunities in the Gulf: Creating Business.

CIVL202 Construction Engineering I

The Contractor Development Program

Surety Bonds: Financial Security Construction Assurance WHEN YOU BUILD... BOND.

SURETY BOND GUARANTEE PROGRAM. What is a Surety Bond? Agreement between: Business/Contractor Surety Company Obligee (Project Owner) The types of contract.

RMI Intro to Surety plus … “Prof V goes back to Campus…”

SURETY BONDS 101 The Basics of Bonding. Surety Bonds 4 A surety bond is an instrument under which one party guarantees to another that a third will perform.

Understanding The Benefits Of Surety Bonds. What is Surety Bonding? Surety ObligeePrincipal.

Obtaining Surety Credit An Introduction to the Surety Process for Contractors and Subcontractors.

Risk & Responsibility Understanding Contract Surety Understanding Contract Surety.

Surety Bonds are Mandated By Law on Public Works Projects Federal “Heard Act” (1894) & “Miller Act” (1935) Require performance & payment bonds for public.

Surety Bonds The Sensible Choice For Managing Risk.

Obtaining Surety Credit An Introduction to the Surety Process for Contractors & Subcontractors.

Surety Bonds The Sensible Choice For Managing Risk.

Surety Bonds 101 The Basics of Bonding. What is Surety Bonding? Surety ObligeePrincipal.

Do you know your SBA financing options?  small business loans  loans for land and buildings  surety bonds for small and minority construction contractors.

SBA Program Update Michael Foutch Economic Development Specialist U.S. Small Business Administration.

Surety Basics 2013 Construction Opportunities Conference

Bergen.score.org Counselors to America’s Small Business S erving Northeast, New Jersey 0.

Surety Bonds Managing the Risk of Contractor Default.

Surety Bonds 101 The Basics of Bonding. Surety Bonds Vs. Traditional Insurance Surety BondsInsurance 3-party2-party Risk transfer Duty to obligeeDuty.

Finance 431 Surety Bonds. Surety Will introduce some new concepts to you Surety business Contract and commercial bonds Distinguish from and compare to.

Protection for Third Party Vendor Contracts Surety Bonds For Public Entities.

The Contractor Development Program

CONTRACT SURETY BONDS: UNDERSTANDING TODAY’S MARKET 2010.

1 Who is SCORE ? Welcome to this Seminar An Introduction to Starting & Growing a Small Business.

LAUSD Boot Camp: Construction Bond Basics Presented by Patty Zenizo Preferred Bonding & Insurance Services September 11, 2013.

Small and Disadvantage Business (S/DBE) Contractor Surety Bond Support Programs.

CONTRACT SURETY BONDS 101: THE BASICS OF BONDING.

“Your Open Door to Bonding”. In 1971, the SBA launched a program to assist small, emerging and disadvantaged contractors to obtain surety bonds that were.

January 14, The NAMC LCDP Will Provide A Proven Contractor Capacity Building Program For The Public and Private Sector.

Why Bond Forms Matter… A Practical Guide to Better Bonding Presenters: Joanne S. Brooks, Esq., Vice President and Counsel, The Surety and Fidelity Association.

U.S. Department of Transportation Office of Small and Disadvantaged Business Utilization BONDING EDUCATION PROGRAM (BEP) A partnership with the Surety.

CONTRACT SURETY BONDS: UNDERSTANDING TODAY’S MARKET 2014.

Investment Protection For Today’s Construction Lender.

Construction & Beyond Surety Bonds For Public Works.

Obtaining Surety Credit An Introduction to the Surety Process for Contractors & Subcontractors.

Why Do Contractors Fail?. Failure Rates Source: US Census: Business Information Tracking Series.

Surety Bonds The Sensible Choice for Managing Risk.

The Basics of Bonding & The Contractor Development Program Presented By: Navid Barkhordar.

IT’S THE LAW IN FLORIDA! PROTECTS TAX PAYER DOLLARS FLORIDA STATUTE FOR PUBLIC CONSTRUCTION FLORIDA STATUTE FOR FDOT CONSTRUCTION AND MAINTENANCE.

Finance 431 Surety Discussion Class II. Surety All businesses have surety needs.

Surety Bonds Performance Bond Payment Bond Benefits Of Bonding Subs Prequalified subs Risk Transfer Improves contractor’s credit standing.

BONDING & ACCESS TO CAPITAL SMALL CONTRACTORS INITIATIVE.

Surety Bonds Get The Facts!. Surety Bonds in Govt Contracting Get The Facts! Agenda –Introductions –Presentation –Q & A Please send your questions 

What Small and Emerging Contractors Need to Know Understanding the Basics of Contract Surety Bonds © Copyright 2016 NASBP.

Professional Relationships Important to Construction Firms The Value of Professional Surety Bond Producers © Copyright 2017 NASBP.

WHEN YOU BUILD... BOND Surety Bonds: Financial Security

The Contractor Development Program

Contractor Review and Prequalification

Understanding The Benefits Of Surety Bonds

The Contractor Development Program

Contract Surety Bonds 101:

Failure Rates. Failure Rates Failure Rates Building, Heavy/Highway, Specialty Trade Contractors % 29.3%

WHEN YOU BUILD... BOND Surety Bonds: Financial Security

“The Importance and How-to’s of Bonding”

Presentation transcript:

June 8 – 10, 2014 Demystifying Surety, the Product and its Value Joanne Brooks Vice President and Counsel The Surety and Fidelity Association of America

The Fundamentals of Surety Bonding Proverbs 11: Heard Act 1935-Miller Act Current Law $150,000 Performance $30,000 Payment Little Miller Acts State Law Thresholds vary Prequalification Capital (Credit) Capacity (Capability) Character (Reputation) Claim Services Performance-protecting taxpayer dollars with a contract completion focus Payment-protecting subcontractors/suppliers

Contractor Failure Rates Building, heavy/highway, and specialty trade contractors In BusinessSurvivorsFailure Rate 853,372 (2002)610,357 (2004)28.5% 850,029 (2004)649,602 (2006)23.6% 1,155,245 (2006)919,848(2008)20.4% 897,602 (2009)702,618 (2011)21.7% 918,483 (2010)696,441 (2012)24.2%

Large Established Contractors Fail Too Morrison Knudsen ( ) Guy F. Atkinson ( ) J.A. Jones (1890’s-2003) Modern Continental ( ) Ballenger ( )

What Surety Companies are Looking for: Sustainability Profitability Continuity Proven track record Pay subs timely Responsible Reference

Surety as a Tool to Build Sustainable Contractors Economic Empowerment Job Creation Sustainability Legacy Wealth

How Does Bonding Benefit the Contractor Bonding capacity can increase your project opportunities Objective 3 rd party with a broader perspective-evaluating contractors is what they do Trusted advisor An advocate Access to expertise in accounting, law, engineering, with deep relationships and understanding of surety and construction

The Surety Industries Commitment to Small, Emerging and Minority Contractors SBA-Surety Bond Guarantee Program- bonds issued by surety companies and guaranteed by SBA MCDP-created by the SFAA to provide assistance to small, emerging and minority contractors Partnership with US DOT BEP

Runway to Success Get a Professional Bonding Agent Work with someone with a proven track record Follow the advise given Get a Construction CPA Know Your Credit Score Nothing beats a failure but a try…let a surety professional assess your bondability Bonding is a process get started now!!