Steve Golia

Here is a subtle but important point for insurance professionals who have General Contractor clients or Subcontractors.

We rely heavily on email, but here is the DARK SIDE!

"Back Bond" The term arises from the practice of "bonding back" a subcontract. Subcontract Performance and Payment Bonds can make or break a project and a company.

Learn about a type of surety bond that is intresting and challenging. These bonds paly an important role in business, and are very hard to obtain. However, there IS a market for them.

Obtaining a Performance and Payment Surety Bond with collateral may seem like a "flexible solution" at the time - but there is a downside.

This underwriting concept has important implications for contractors, agents and surety bond underwriters. However it is not well understood.

Contractors who require bid and performance bonds for their contracts need to maintain a favorable relationship with their bond providers. When critical information is prepared incorrectly, contractors can spend an entire year backpedaling, trying to minimize the damage.

Bid Bonds. Performance Bonds. Surety Bonds. Construction contractors need them to grow their companies, and yet they are so hard to obtain.

Individual Sureties expect their contractor clients to provide mid-year financial statements. These are an expense and an annoyance to many contractors. Is it better to NOT provide them?

Contractors and their Bonding Agents need to know the lingo: WIP, WOH, Aggregate. What are the underwriters talking about?