An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant...
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® An Estimator’s Guide to Understanding Contract Surety Presented By: Mike Kelly & Tom Latz Thomas McGee, L.C. February 1, 2013
Transcript of An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant...
®
An Estimator’s Guide to
Understanding Contract Surety
Presented By: Mike Kelly & Tom Latz
Thomas McGee, L.C.
February 1, 2013
®
Contract Surety Bonds
• Bid Bond
• Performance Bond
• Payment Bond
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Who Requires Bonds?
• Public Sector
– Federal Government
– State & Local
Governments
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Who Requires Bonds?
• Private Sector
– Private Owners
– Lending Institutions
– General Contractors
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Principles of Contract Surety
Surety
Obligee Principal
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Prequalification
Financial
Strength Character Experience
Equipment Credit
History
Banking
Relationships
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Prequalification
Capital
Capacity
Character
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Prequalification
Capital Financial statements
Working capital
Work-in-progress
Indemnity
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Prequalification
Capital Financial statements
Working capital
Work-in-progress
Indemnity
Capacity Resumes
Contingency plan
Business plan- short &
long term
Equipment
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Prequalification
Character Reputation
Relationships
References
Capital Financial statements
Working capital
Work-in-progress
Indemnity
Capacity Resumes
Contingency plan
Business plan- short &
long term
Equipment
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Benefits of Surety Bonds
• Qualified bidders
• Reduced risk of liens
• Timely project completion
• Defect protection
Owner
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Benefits of Surety Bonds
Contractor
• Contract reviews
• Continuity plans
• Expertise
• Project qualification
• Private construction
• Lending institutions
• Subcontractor protection
• Technical, managerial, financial assistance
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Additional Items
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Additional Items
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For More Information
920 Main Street, Suite 1700
(816) 842-4800 | Toll Free (800) 423-9044
www.thomasmcgee.com
Mike Kelly, Risk Consultant
(816) 843-4439
Tom Latz, Risk Consultant
(816) 843-4481
