News & Events

December 2016 Construction News Brief

This month’s construction newsbrief contains information about bonding capacity and surety issues, and warning signs to watch out for when deciding whether or not to pursue a project. Below are brief introductions to both articles. You can view them in their entirety by choosing the newsbrief link.

December 2016 construction news briefBonding Capacity and Surety Issues

Pursuing New Opportunities?
Be Sure You Have Adequate Bonding Capacity

With the construction industry experiencing modest growth with an optimistic outlook for the future, most contractors are eagerly seeking out new opportunities. In many cases, though, those opportunities can remain out of reach unless the contractor can increase its bonding capacity.

But how do you go about doing this? No single answer applies to all circumstances: Every contractor’s financial and operational situation is unique, and every bonding company will have its own standards and expectations – not to mention its own appetite for risk.

Despite the many differences, however, there are a few best practices that can get you started in the right direction. [read full article]

Know When to Say “No”

When the pace of business is accelerating, there’s a natural tendency to go after every new opportunity. But sometimes discretion is a wiser strategy.
Here are seven warning signs to watch out for when deciding whether or not to pursue a project:

1. Questionable finances — Due diligence is essential. Subcontractors should always confirm the general contractor’s capabilities, and both subs and GCs should verify the project owner’s financing status.
2. Unfamiliar work or terrain — Branching out into new specialties or markets can be a good growth strategy, but be sure you can access the expertise you will need to successfully complete the project.
3. Unreasonable expectations — Does the project owner have unrealistic demands regarding budgets or schedules? Are bid deadlines being rushed? Good customers don’t ask you to cut corners. [read full article]

December 2016 Construction News Brief