How can a contractor take it’s bonding capacity to the next level?
South Coast Surety
Construction Executive magazine featured Steve in their 14th annual ‘Contractor’s Guide to Surety Bonding’ where he answers the question that many contractors have – how does a contractor grow their surety bonding capacity?
Steven Swartz: “Some might say it is easy to increase your surety capacity to the next level…. Not really. It takes planning and effort. Understanding what the surety underwriters are looking for in order to approve the leap into larger bonded work is the most important key factor.
Yes, you need to have shown the ability to successfully manage the bonded work in your current program with good profit margins that don’t fade. And yes, you need to have a good financial presentation prepared that reflects the profit stream from those jobs and also displays your continued efforts to retain and grow the company working capital and net worth.
But, it is your professional surety agent that can help guide your firm in reaching the larger work program goals. Your surety agent should be communicating regularly with your CPA who is experienced in generating construction accounting financial statements in a form and format preferred by the surety underwriters. Your experienced surety agent should be working hand in hand with you and your staff as you work through your current work and start to focus on the future jobs you intend to pursue.
The successful construction executive aligns with a strong independent advisory team of an experienced construction attorney, experienced construction accounting firm and an experienced professional surety agent. When added to your own professional staff, this team provides the insight and support to make that path to larger bonded contracts seem easy.”
If you’d like to talk with Steve about your current bonding capacity and further details on how to increase it, give him a call at 800-361-1720 or email firstname.lastname@example.org.