All posts by M L

Federal Government Contractors – Performance & Payment Bond Opportunity in August & September 2018

Performance and Payment Bonds for Federal Government Year-End September is a very important month for federal government contractors as September 30th marks the fiscal year end for the federal government. This means that they need to spend their budget in a “use it or lose it” mentality. Government contracting officers will be busy putting together projects and putting them out to bid in an effort to spend their funds. This opens the door for federal government contractors to potentially secure a large amount of work to ensure that backlog is strong going into 2019. You may recall due to The Miller Act, a performance and payment bond is required to be furnished for all federal government projects over $150,000 in contract value. This means that a federal government contractor should have the ability to get performance & payment bonds in all states where they are performing work. Not only that, but there is the importance of having the best bonding program possible in place. Since the surety bond market is so soft, there is an opportunity to improve on most bonding programs. Surety Bond Professionals can improve on all bonding programs in terms of: – Helping contractors bid larger...

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By M L

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Performance Bonds in Connecticut – Apply Now

If you’re just starting out as a construction contractor in Connecticut, or have predominantly taken on private work, it’s possible that you’ve never been required to obtain a performance bond before. Many public, local, and federal construction jobs require the low bidder on contracts obtain certain bonds before beginning work, and the performance bond is a common one that you’ll encounter. But in case you’ve never had to go through the process before, here’s some basic information about performance bonds, when you’ll need them, and what they mean for your business. Performance Bond Connecticut: Essential Information A performance bond is a type of surety bond that guarantees the work of a commercial contractor when working on a construction project. As a contractor, when you’re awarded a job by a developer, you may have to obtain a performance bond that ensures you’ll meet the contractual obligations of the job. In other words, a performance bond provides a guarantee that a contractor who’s been awarded a construction job will complete the job on time and by the contract specifications. When Do You Have to Obtain a Performance Surety Bond in CT? A performance bond in CT is required for any federal...

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By M L

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Performance & Payment Bonds in NY – New York Construction Bonds

Construction Bonds in New York Every construction job has a lot of moving parts, in the sense that it relies on a huge number of people with different skill sets. To ensure that all of these people carry out their duties properly and according to all applicable safety codes, construction bonds are usually required before a contractor or subcontractor can perform any work. There are several different types of construction bonds, including bid, performance, and payment bonds. Today we’re going to talk about the difference between a performance and payment bond NY, talk about who needs these bonds, and discuss why you still need insurance even if you have a surety bond. Everything You Need to Know About a Performance Bond in NY One common type of construction bond is a performance bond. As a contractor, you’ll often be required to obtain a performance bond from a surety company, and this acts as a promise to the client (the obligee) that you’ll complete the project as per the terms of the contract. This includes completing all the work, finishing on time, and coming in on budget. In a case where the contractor (the principal) doesn’t live up to those...

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By M L

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What to Know When Hiring Employees

Your construction business is off the ground and running. Even the Wright Brothers are impressed at how you’ve taken flight! But a company is only as strong as its workers. It is important to surround yourself with people who have faith in your business.  It is also important that these people believe in your company’s virtues and philosophy. In today’s blog, we’re going to touch upon topics that are important for any small business owner: Do you know your EIN? To begin with, your employees will be filing taxes and claiming they work for you.  In year’s past, employers sometimes used their social security number as their Tax Identification Number.   This is a big no-no! You should NEVER give out your social security number! Instead, you should apply for an Employer Identification Number (EIN). You can get this from the IRS. You can do this online or through your accountant (definitely make sure you have an accountant!). In addition, any and all tax records should be kept for at least four years, for auditing purposes. Oh, but the numbers! Someone who you should work rather close with is your accountant. Don’t just call your accountant around tax season. Stay in...

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By M L

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To Bond, License and Insure?

Starting your own construction business can sometimes be a leap of faith. But that faith in your business is stronger if you learn about the industry.  For example, it is important to know the benefits of being a licensed, bonded and insured construction company. Why should I be licensed and apply for permits? The simple answer is for protection, for you and your customers. It may be easier to cut corners and not apply for permits or licenses. But, if you want to have a long standing and respective business, licenses and permits are the way to go. First, you will need a general business license.  Beyond that, it is important to check with your local government and state offices to see which other license you may need. Permits are important because they help you to maintain valid parameters. By pulling a permit, you have sought the approval of your local government offices to perform the work that your customer wants. What about insurance, do I need insurance? How many insurances you need depends on the work you perform. If you directly employ workers, then you will need an insurance to protect yourself. If you drive your truck for...

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By M L

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Surety Bonds and Insurances: Are They the Same?

There are many who confuse surety bonds with insurances, as they are both a means to protect finances.  But, in their execution of this goal, they serve different purposes.  Confusing the two or using them interchangeably can stop your business from growing.  In the world of construction, constructions projects may require a surety bond.  With that in mind, the public construction sector is always building and is a good avenue for a contractor to grow their business.  And even many private sector construction jobs require surety bonds.  Having a knowledgeable surety bond producer can help you to grow your business.  Consider them an important tool in your tool box.  Here are some important things to know: A surety bond is a contractual agreement between the project owner or client, the contractor or business and the surety bond producer. The surety bond producer ensures that they have vetted the business and that they are financially sound.  If the business owner does not fulfill the contractual obligations, then the client can file a claim.  If found to be in default of the contract, the client will then receive financial compensation. Surety bonds and insurances are NOT the same thing. Therefore, when...

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By M L

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Surety Bonds and Insurances, Working Together

We have recently rolled out a program to partner up with insurance agents to get their clients the best surety bonds in the industry. So why should YOU work together, as an insurance agent, with Surety Bond Professionals? Well, we’re glad you asked! We offer access to the best carriers. We have been in the field for over 25 years. This has allowed us to form respectful relationships with many surety companies. This puts us in a position to work out deals for difficult-to-place bonds. This translates into better terms, more capacity and better rates for YOUR clients! We pay the highest commissions. We want your business and know you work hard. Thus, we share 30-40% of the premium with you for referrals on ALL bonds your accounts bring in. We treat you and your clients with the utmost respect. Clients, prospects and partners should be treated well. We value our “business family” and consider every one of them to be a part of it. So you can be ensured that you and your clients are in the best care in the business! Much of business is about relationships. The people you work with on a daily basis are...

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history of surety bondsSurety Bonds

History of Surety Bonds

Surety bonds are such a regular part of our business world today that it is hard to imagine a time where we didn’t have them.  In a previous blog, we mentioned that the first form of a surety bond occurred in 2750 B.C.  We wanted to investigate a little more about the history of surety bonds.  So, join us, as we take a short trip down surety bond memory lane! 2750 B.C. It all starts with our farmer friends in Mesopotamia, where one friend goes off to serve in the army and creates an agreement with another farmer to take care of his fields while he is away. In order to ensure this, a third party (a merchant) guaranteed that the second farmer would uphold his agreement. Later, in 2400 B.C. we find our first written surety bond, on a stone tablet. The surety guaranteed that one party would pay the other party. Fast forward a few hundred years, to 1790 B.C. and we find the law Code of Hammurabi, with the first legal surety document. We’re moving along here to 670 B.C. where we find our first written surety contract, written closer to how we understand surety bonds...

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By M L

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Advice from the Experts Before Starting your Contracting Business

Congratulations!  Starting your own construction business is a fulfilling and successful career choice.  There are bound to be hurdles.  But through our many years of working with contractors, we’ve heard a few things from the best of the best.  Here is their advice of mistakes to avoid: Hiring reliable workers: Having a high turnover rate doesn’t bode well for a reputation. Although it very well may be that you’ve had bad luck in the hiring field, it could also raise a few questions. Underestimating your business startup: You probably have faith in your contracting skills. Do you have faith in the other component of a contracting business, namely the “business” portion?  Running a business is a business in and of its own!  There is payroll, overhead, buying materials in bulk, etc. Going in blind: To piggy back off the last piece of advice, not having a detailed plan for starting your business is important! Basically, invoke Murphy’s Law and think of everything that can go wrong and begin to find solutions for them.  Do you need a surety bond?  What equipment do you need?  How will you handle your employees?  What benefits will you provide? Build a good, scratch...

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By M L

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