Goldleaf Update On Surety Marketplace

Currently,  the surety industry has a lot of excess capital.  This translates into surety companies being fairly aggressive for good, solid contractors.  Surety companies are willing to look at expanding the capacity of contractors and providing better terms to good accounts. As a result of the soft surety market mentioned above,  Goldleaf Surety recommends that good, solid construction companies have a surety checkup periodically to ensure that they are getting the best possible surety … [Read more...]

Goldleaf Assists Fiber Optic Companies with Bonding

Over the last several months, Goldleaf Surety has assisted several fiber optic company's obtain the bonding support they needed.  Working with our surety partners, we were able to obtain bonds in situations where others had said no.  Each situation below had factors which Goldleaf Surety was able to understand and present to a surety so that they were comfortable with the risk. Assisted a private equity owned company which designs, installs and maintains private fiber networks for schools, … [Read more...]

Goldleaf’s President Participates in MSA Succession Planning Panel

Goldleaf Surety's President Jack Anderson will be part of the Succession Planning Panel hosted by the Minnesota Subcontractors Association (MSA) on Wednesday, May 11th.  The program is being held at the Radisson Hotel in Roseville, Minnesota. The panel, composed of Jack Anderson;  Tom Hubler  owner of Hubler for Business Families; David Levi, Senior Managing Director of CBIZ MHM, LLC; and Dave Senger, business law counselor and estate planning legal advisor with  Moss & Bennett will … [Read more...]

Bonding Capacity and Financial Statements

Goldleaf Surety Services has always stressed to its clients the importance of year-end financial considerations.  Beyond a history of consistent profitability and positive cash flows, surety companies focus a lot of their attention on equity and working capital to determine what level of surety support they are willing to extend.  That is why Goldleaf Surety Services stresses to all of our clients the importance of a regular financial statement review as an important issue in maintaining or … [Read more...]

Surety-Oriented Considerations at Year-End

With tax season upon us, many companies are dealing with their year-end planning issues.  And how a company deals with these issues can have an impact on their surety support for the upcoming year. In my December 2013 blog posts Surety Bonds & End of Year Considerations - Part 1 and Surety Bonds & End of Year Considerations - Part 2, we discussed in detail several year-end considerations that are vital to a company's future surety support.  Good advice from an attorney, banker or tax … [Read more...]

Surety Bonds and Bank Letters of Credit Comparisons

By:  Jack Anderson, President This is the 3rd post in a series exploring surety bonds and bank letters of credit – what each is, their differences, and advantages and drawbacks to each. What is the expected cost of each instrument? For a surety bond, cost is generally 0.5% to 2% of the contract price.  A bond is project specific and covers the duration of the contract.  The cost of the bond is included in the contractor's bid price. For a bank LOC, the cost is generally 1% of the … [Read more...]

Surety Bonds and Bank Letters of Credit Comparisons

By:  Jack Anderson, President This is part 2 in a series of blog posts where we will continue to explore surety bonds and bank letters of credit – what each is, their differences, and the advantages and drawbacks with each. How is each obtained? The contractor obtains the bond through a surety bond agency or a surety bond producer such as Goldleaf Surety Services. The contractor obtains the LOC through a banking or lending institution. What is your borrowing capacity with … [Read more...]

Surety Bonds and Bank Letters of Credit Comparisons

By:   Jack Anderson, President Over the next several blog posts, we will explore surety bonds and bank letters of credit – what each is, their differences, and the advantages and drawbacks to each. Let’s start with a basic definition for each. A surety bond is a three-party agreement between the surety company, the oblige (project owner), and the principal (the contractor).  A performance bond protects the owner from non-performance and financial exposures should the contractor … [Read more...]

Troublesome Contract Clauses: Change in Terms

The final troublesome contract clause we will look at in this series is the Changes in the Work clause. A contract change occurs when an event or condition modifies the work as defined in the contract documents. Changes may include: Additions to or deletions from the work to be completed Changes in the materials specified Corrections in the specifications or drawings Acts or omissions of other contractors or trades Departures from the contract schedule Changes affecting the … [Read more...]

Troublesome Contract Clauses: Indemnity Clause

We continue our look at troublesome contract clauses with the Indemnity clause. Craig Martin, Attorney with Lamson, Dugan & Murray explains that indemnity is the shifting of loss from one party to another. Every state recognizes this legal right. The duty to indemnify can arise due to a statute, common law, or by contract. Common law and statutory indemnities may transfer liability from a party that has little or no responsibility for a loss to the party that has more or all of the … [Read more...]