C ONTRACTOR B OND W ORKS More than Bonding. Access to Capital. Los Angeles Unified School District

What is the Contractor BondWorks Program? Who Can Participate In It?  Eliminates barriers to bonding and access to capital by providing line of credit guarantees for LAUSD construction contracts.  Experienced contractors or newly established construction companies may apply, as long as the eligibility criteria is met.

Overview of Program Services Bid, Performance and Payment Bond Guarantees Contract Financing Guarantees Contractor Consultation & Technical Assistance Third Party Funds Administration

Program Services Bid, Performance & Payment Bond Guarantees Eligible contractors will be positioned to secure bid, performance and payment bonds for LAUSD contracts. The bond guarantee maximum is 40% of bond or $400,000, whichever is less, per contract, per contractor.

Program Services Contract Financing Guarantees Contractors will have access to contract financing guarantees of up to 50% of contract specific financing or $200,000, whichever is less, to pay for materials, subcontractors and labor costs associated with LAUSD contracts. Contractors may utilize a combination of bond and finance guarantees up to a maximum value of $400,000.

Program Services Contractor Consultation & Technical Assistance Contractors will be provided with one-on-one consultations to determine bonding and financing eligibility, and access to financial management workshops. Third Party Funds Administration Participating contractors will be provided with funds administration services to ensure timely payment to suppliers and subcontractors, and to fulfill labor expense obligations. A successful payment history will increase contractor credit worthiness for continued access to bonding and capital.

Example of Services The Challenge: ABC Construction Co. has $250,000 in bond capacity currently available to their company. They have recently come across an LAUSD contract for which their bid estimate is approximately $350,000. Being that their bond capacity is limited to $250k, they are having a difficult time in obtaining a bond for $350k to support this contract.

Example of Services The Solution: The Contractor BondWorks Program can potentially negotiate with the contractor's Surety Co. to post a collateral guarantee to them on behalf of the contractor (up to the maximum limits afforded by the program) so that the Surety Co. may increase the contractor’s bond capacity to $350,000—thereby allowing the contractor to obtain the bonding required for this contract.

Program Eligibility Graduation from the Small Business Boot Camp or the Contractor Academy Labor Compliance Training Project Stabilization Agreement Training Safety/Contractor Prequalification

Frequently Asked Questions If I already have a bond agent, do I have to switch over to your company? I currently have $400k in bonding capacity, can I get the additional $400k from your program? I already submitted my information to my broker, do I have to submit all my information to your company again? What is the cost to participate in your program? Does your program have a minimum or maximum dollar value for contracts that are eligible to participate? I have already worked on LAUSD projects in the past, do I have to attend all the training seminars?

Enroll Today! Merriwether & Williams Insurance Services 523 West 6 th Street, Suite 650 Los Angeles, CA Tel. (213) – Fax. (213) Paulette WilliamsNavid Barkhordar (213) (213)