Why is My Bonding Company Asking for a Continuity Plan?
Surety bond companies need to know that projects will be completed in the event of an untimely death, extended absence, or disability of a construction company owner or key employee(s). Without a continuity plan in place, the unexpected loss of a key owner or employee(s) can create a chaotic situation for contractors and potentially their…Read More
What Risks Should Contractors Anticipate When Considering Solar Power Purchase Agreements?
Solar power purchase agreements can be lengthy and complicated. Contractors need to keep it simple, avoid undue risk, and focus on the construction component. An underwriter will review the entire solar power purchase agreement, but contractors need to keep it simple and focus on the construction component only. Don’t get caught up in the onerous…Read More
Can You Get Bonded If Your Company Has A Negative Net Worth?
Over our 25 years in the surety business, we’ve met some excellent, successful contractors who thought they couldn’t get a surety bond because their company had a negative net worth. Nothing could be further from the truth. In fact, the SBA doesn’t even consider your company’s net worth when they look at bonding capacity. If…Read More
Why Are Personal Guarantees Required for Surety Bonds?
Joe Catania, President of Anderson & Catania Surety Services, discusses the reason why owners of construction or contractor companies must sign a personal guarantee with a surety company. What does it mean to offer a personal guarantee to a surety company? The owners of the company sign with a personal guarantee, so in addition to…Read More