We Got It Done Wednesday (actually Thursday, since Cal was too busy witting bonds to finalize his success story in time)!!
Here at Goldleaf bonding has never been, and will never be, black and white. Especially when it comes to bonds that are slightly outside the standard box. We often receive referrals for bonds when others are not able to find a market that would support the request. And when we initially look at the information submitted, we understand why they are getting declined. But our team focuses on digging deeper into accounts, looking to see if there is a reason they should be considered, and actively problem solving with all parties involved to find a realistic bonding solution. And that is exactly what our Account Manager, Cal Anderson, had to do in his success story below.
Cal received a new account that needed a 3-year $9MM grant funded broadband project that required bonding. Unfortunately, this project had a few major hurdles when it came to finding a market that would support this bond. First, the contractor that was taking on this project started out as an electrical and HVAC contractor but had expanded into the internet service provider sector. When you look at this company on paper, it looks strictly like an electrical and HVAC contractor. Without digging deeper, someone would immediately assume that this company would not have the experience needed to complete fiber optic internet installation and service. But through Cal’s conversations and meetings with this client, he learned that they had ample experience in this line of work.
Additionally, their largest project previously completed would not traditionally qualify them for a $9mm project in the standard market. So, instead of focusing on their largest contract completed, he asked them how many miles of cabling they laid at their own expense since starting. As they had completed approximately 150 miles of cabling, the project made more sense as it required 300 miles of cabling over the 3-year term.
Finally, this project was estimated to take 3 years to complete. Cal worked with all parties to figure out a way to tangibly split the $9MM project into three phases. Each of these three phases were then individually bonded, which resulted in each bond lasting approximately 1 year, 100 miles a year. This ultimately was a much more appealing structure for the surety to support.
When this bond submission came in, it was easy to understand why others were not able to get this done. Thankfully, Cal was able to dig deeper and think outside of the box, which led him to finding a market that could understand why this bond should be written. Please help me in congratulating Cal! Follow along next week to see what our Vice President, Brenda Risa, was able to get done.