South Coast Surety specializes in Supply Contract Bonds
Now enjoy larger limits and lower rates with commercial contract express for our supply contract program
For Single Bonds to $1,000,000 and
Aggregate Programs to $1,500,000
Supply Contractors can include:
Office/School Supplies, Flooring/Counters, Fencing, Modular Buildings,
Work Trailers, Landscape, Portable Restrooms, Cabinets, Painters, Computer/ Electronic Equip., Irrigation Equip., Boiler/Generators,
Low Voltage Wiring, Software, Wireless Installations,
Specialized Vehicles
SUBMIT YOUR APPLICATION FOR A FAST APPROVAL
Where most surety agencies focus on the bricks and mortar construction contractor, South Coast Surety has established special surety relationships with surety companies that prefer writing for the service and supply type contractor.
Now Available, strong support for well established contractors with good financials and credit; as well as good solutions for contractors needing supply and service surety bond support, that have impaired credit and financials.
To Get a Larger Standard Program Established
Typical Requirements:
Completed "Supply/Service Contractor Questionnaire"
Last three (3) CPA prepared year end financial statements*
Most Recent Interim Personal financial statements of all business owner (s)
Bank letter verifying balances and credit arrangements
Resumes on owners and key personnel
WHAT IS A COMMERCIAL CONTRACT BOND?
A Supply Bond is a type of contract bond that guarantees that the supplier will furnish supplies or materials as contracted. Should the supplier default, the surety will underwrite the purchaser of the supplies against any loss. This bond is required by the project owner or state or federal law to secure public construction projects.
As with all contract bonds, Supply Bonds are underwritten with a full submission of a questionnaire, financial statements, etc. The ability to attain supply bonds is slightly less cumbersome and easier than the standard construction bond.
Supply Contract Bonds include:
Bid bonds, which provide financial assurance that the bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds.
Performance bonds, which protect the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
Payment bonds, which guarantee that the contractor will pay certain subcontractors, laborers, and material suppliers that, are associated with the project.
Supply Contract Surety is Relationship Driven
Most surety companies issue service bonds through surety bond producers. The first step toward establishing surety credit is to contact a professional surety bond producer who:
* Understands the intricate process of surety bonding and the unique underwriting standards and practices of individual surety companies;
* Matches the needs of the contractor with the surety company that is best suited to service those needs;
* Guides the contractor through the bonding process and assists in managing the contractor’s surety capacity;
* Creates and nurtures a successful relationship between the contractor and the surety company;
* Provides introduction to qualified accountants, bankers, and lawyers who understand the construction business;
* Offers sound business advice, management consulting, and technical expertise to help the contractor maintain growth and profitability.
South Coast Surety is an expert is placing Supply bonds, with decades of experience covering a wide spectrum of businesses.
To get the very best program available, we need:
Completed "Supply/Service Contractor Questionnaire"
Last three (3) CPA prepared, company year end financial statements*
Personal financial statements of the business owner (s)
Bank letter verifying balances and credit arrangements
Resumes on owners and key personnel
Most Surety Companies are looking to support firms that have a well established history of successfully completing the size and scope of work they are being asked to bond. To determine the amount of surety support (single bond size and aggregate cost to complete limits) the surety will analyze the presented financial information.
Most Surety Markets are going to require CPA prepared business financial statements. The size of the business as well as the size of the jobs that will need performance and payment bond support will determine the level of presentation required by the surety.
For firms looking to do bonded work under $500k with around $1.5 to $2 mil. in outstanding aggregate, many surety companies will accept fully scheduled compilation statements. All sureties prefer that the revenue be recognized on a percentage completion basis.
For firms doing larger jobs, with annual revenues up to $10 mil. to $15 mil. most surety markets are going to require that the CPA prepare the financial statements on a reviewed basis. When you get much larger, the surety underwriters may require audited statements.
To help understand the form and format the surety underwriters would prefer to see the CPA prepare the contractors financial statements, we have an example available here:
Example of CPA reviewed financial statement
