The mechanic’s lien is a unique legal remedy available to the construction industry to secure and collect on debt that arises from services furnished to a construction project. Each state has specific rules about when the lien must be filed (see Lien Deadlines) and who has the right to file. This general rule stands across the country: Entities that furnish labor, materials, equipment or services to a project where real property was being improved in any way are entitled to secure that claim by filing a lien against the property, if the document is filed relatively soon after furnishing. And what is the exact value of a mechanics lien? Why should one be filed? How exactly does it work to get the claimant paid? Continue »
Prevailing business wisdom holds that the way to reduce credit risk is to limit credit lines, be stingy in allowing credit and freeze orders on past due accounts. This line of thought posits that it is generally impossible to lower “bad debt” losses without adverse consequences to sales and business expansion. Read The Full Story »
Each year, the Merchants Bonding Company™ Leaderboard Program salutes agency partners who have demonstrated their surety savvy and collaboration for growth. We salute Pinnacle Surety & Insurance Services of Costa Mesa, CA for attaining the Champions Tour of surety professionals. Congratulations Eric Lowey, Mark Richardson and Shawn Blume for surety professionalism in 2012. Merchants Bonding has partnered with Pinnacle Surety for over a decade. We thank them for the successes we’ve had together and recognize them for sharing our common sense vision. See our online salute to Pinnacle Surety & Insurance Services of Costa Mesa, CA here.
Many recent studies show companies are taking risk management more seriously. For example:
According to a 2011 Swiss Re Group report, total economic losses caused by natural catastrophes and man-made disasters reached a record $350 billion with only $108 billion covered by insurance, exposing those affected to almost 70 percent of all losses, which directly affected their bottom line. Continue »
The Miller Act protects certain subcontractors, laborers and suppliers that provide labor or materials for the construction, alteration or repair of federal projects against the risk of nonpayment. Claimants that improve a federally owned project cannot record a claim of lien against the improvement. For example, despite its potential value on the open market, the Washington Monument cannot be foreclosed on by a subcontractor that performed certain construction improvements at the landmark. Continue »
Under President Obama’s health care reform law, companies with 50 or more full-time employees/equivalents (FTEs) must provide their workers with health insurance in less than a year, or face tax penalties. With so little time to comply, business owners should create and implement a health insurance strategy now. Continue »
Construction Executive asked top executives at leading sureties and insurance companies specializing in construction for advice and insights on: Continue »
An emergency preparedness plan can help maintain control during an emergency and help the injured employee receive the right level of care as quickly as possible. Continue »
The second annual World Risk Day (WRD) on May 14, 2013 is the only annual event focused on increasing global awareness of the importance of effective risk management to all types of organizations. The event, themed “Shattering the Project Myth,” will feature a free global Virtual Summit of high-impact speakers, live social media discussions, and an online resource center providing the latest thinking on risk and project management. Project management experts, risk professionals and business executives from around the world are invited to participate in the free World Risk Day Virtual Summit. Continue »
FMI’s research consultant Rick Tison and Michael Davis, director of Professional Liability Products at Zurich North America Construction, continue the dialogue on changes in today’s challenging operating environment and how new techniques, delivery methods, and construction materials are changing the game of managing risk in the construction process and how best-of-class firms are responding.
Like most industries, the insurance business is cyclical. Although it is affected by the general business climate, it ebbs and flows as a result of unique factors.
In the construction industry, few partnerships are as vital as the one between contractors and sureties. A strong surety relationship, especially in a volatile economy, can assure contractors they will have the stable and predictable bonding support necessary to accommodate their business plan. Continue »
Contractors that proactively manage their companies turn their most recent data into leading indicators to help predict future outcomes. These indicators most often are used in sales and marketing, but they also can be used in safety. Continue »