It was a sad day in West Michigan in July 2014 when the President of Lamar Construction announced they were closing, bankrupt after being in business since 1938. The bank had canceled their line of credit. Continue »
Why Do Contractors Fail?
Top Five Reasons for Contractor Failure
Being a construction contractor means facing a lot of risks and difficulties. From the ongoing labor shortage to the language of contracts and the terms of insurance, the hurdles contractors need to jump through can be many. Continue »
How Will the New 2017 AIA Contract Documents Affect Projects? Keep Up With Developments and Revisions to AIA Owner-Contractor Agreements
The American Institute of Architects (AIA) has published standard form agreements since 1888. AIA Contract Documents have long been viewed as the industry standard in reflecting current industry practices and fairly balancing the risks and responsibilities of all project participants. Continue »
Infrastructure Boom Will Mean Opportunities and Risks for Construction Firms
The consensus that our nation’s aging infrastructure is in serious need of repair and the need to rebuild is broadly accepted by legislators, business leaders and the American public. Continue »
Six Tips for Successfully Resolving Construction Disputes
Once a construction dispute arises, the parties to the contract may find themselves wondering what the best course of action is. Disputes can be time-consuming, harmful to a contractor’s reputation or damaging to the relationship between them and the client. Continue »
Executive Insights in Insurance and Bonding
Construction Executive asked top executives at leading sureties and insurance companies specializing in construction for advice and insights on:
- What do contractors need to know about additional insured coverage when obtaining insurance?
- If there is a burst of construction activity under the Trump administration, what advice can you offer to contractors that might overextend?
- What insights can you offer as the practice of contractors purchasing surety bonds directly becomes more common?
- What are the benefits of the surety bonding prequalification process and how can contractors prepare for it?
What’s the Difference Between Contractor Bonding and Insurance?
State laws often require contractors to obtain a license bond and/or contract-specific bonds, as well as workers’ compensation and liability insurance. The difference between contractors bonding and insurance is not always clear. Continue »
Surety Considerations for Contractors Leveraging ESOPs
Many companies face the decision of how to continue their companies when their CEOs retire. Some consider Employee Stock Ownership Plans (ESOPs) in order to cash out existing shareholders and allow employees to assume ownership of the company through contributions into an ESOP trust. Continue »
Internal Controls Prevent Construction Losses
Internal controls stem from the idea that no one individual should have complete control over a given transaction process and that there should be proper segregation of duties among individuals involved in every process. Continue »
Mitigate the Risk of Subcontractor Default With a Surety Bond
The construction industry has been an ever-changing environment during the last decade as it adapts to the rise and fall of the market. Project owner demands and requirements have increased. Continue »
Merchants Bonding Company Congratulates Smith-Manus
Congratulations Smith-Manus of Louisville, Ky., for achieving the Champions Tour of surety professionals. Merchants Bonding Company’s™ Leaderboard Program recognizes Merchants’ exclusive group of top contract surety agents who have demonstrated a commitment to growth with Merchants. Thank you Brook Smith, Tom Smith, Jason Cromwell, Ray Hundley and Jim Martin of Smith-Manus for your partnership and sharing our common-sense vision. See our online salute to Smith-Manus here. Continue »
How Does Safety Impact Surety Bonding?
While many factors impact surety bonding, some are more obvious than others. Surety companies continually monitor a contractor’s financial strength, capacity to execute their projects and the quality of their management team Continue »