Surety bonding is an important part of A and H's commercial
operations and our longstanding relationships with bond underwriters
have made us a leader in this field. The Surety Department provides
the following services to our clients:
Proposal to Underwriter
From information provided by the client, we prepare a comprehensive proposal for submission to the surety underwriter. The evaluation covers the details of the financial statements; gives input on trends; includes a resume on management; highlights banking arrangements, perpetuation plans, etc. Our purpose is to make a clear presentation which the underwriter can understand and respond to in a minimum amount of time with a maximum amount of information and direction.
Review and Negotiation of Credit Program
We work closely with our existing clients to develop strategies that will maximize their available bond credit. Our bond tracking system follows all outstanding bonds and notifies underwriters when projects are completed and continually updates work on hand, which allows underwriters to adjust credit limits accordingly. In addition, we routinely provide quotations for bidding purposes and deliver final bid bonds under tight deadlines.
Subcontractor/Prime Contractor Investigations
Review credit information, such as NACM and D&B Reports to determine the subcontractor's or prime contractor's standing in the credit community. Obtain information within the related construction industry and the performance and track record of the subcontractor or prime contractor.
Owner Investigations
A review of the owner as to who he is, his experience as an owner and what the reputation of that company is as a buyer of construction services. .
Confirmation of Financing on Private Work
We review the financing arrangements between the owner and lender to include
the take-out lender. We can confirm for your benefit that all conditions of
the lending requirements have been met by the borrower (owner) and that the
lender (bank) is prepared to disburse funds for construction.
Bond Form Analysis
As an ongoing service, we review bond forms required of you as a contractor by owners or others to insure that your rights and obligations are protected under the owner's form. In addition, we review lower tier subcontractor bond forms to determine that the payment and performance obligations of the subcontract are being guaranteed under the bond form. We also can recommend or provide sample bond forms for use by the subcontractor.
