RESOURCES / BOND FUNDAMENTALS
What surety bonds are, the three-party structure, and the mechanics of indemnity.
7 ARTICLES IN THIS CATEGORY
When I first started at WIA, a contractor asked me point-blank: "Why do I need a bond? I've been building for twenty years and I've never stiffed anyone." It was a fair question. He had a great track record, solid…
4 min read · 802 words
A contractor I spoke with last month told me he had been bidding bonded work for three years and still was not entirely sure what a payment bond covered versus a performance bond. He is not alone. The terminology blurs…
4 min read · 888 words
I used to think underwriting was a black box. You send in a stack of documents, wait some unknown amount of time, and either get a yes or a no. Working alongside the surety professionals at WIA showed me what actually…
5 min read · 911 words
The first call I remember sitting in on at WIA was with a paving contractor who wanted to start bidding public work. He had been in business for seven years, had a solid crew, and was profitable. But he had never been…
5 min read · 984 words
I sat in on a file review at WIA a few months back where two contractors had nearly identical revenue. Both were doing about $8 million a year in commercial work. One had a bonding program north of $5 million single and…
5 min read · 943 words
There is a moment in almost every new bonding relationship where the contractor pauses. Everything has gone smoothly. The financials are submitted, the underwriter is positive, and the program is about to be approved…
5 min read · 999 words
You have probably had this moment. A bid comes across your desk. Good project. Right size. Right location. The kind of work your crew does well. And before you even look at the plans, a question lands in your stomach…
8 min read · 1,518 words