Industry News
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
In my recent StudioOne™ podcast episode with Kevin Brown, Of Counsel with the CPA Firm RBTK, LLP, we discuss the anatomy and considerations that go into strategic planning for your business.
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
Like any great match-maker, a surety bond agent needs to fully understand both parties in order to match the contractor with the right bond company.
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
You may know that the surety client/agent/underwriter relationship is different from other lines of insurance.
Whether you are new to the bonding process, or have been doing bonded work for years, there are a handful of important items that can assist with securing the best relationship for your bonding needs. It really boils down to a few key areas: timely information, accurate information, and regular communication.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
Several years ago, I put together an article on various credit driven surety bond offerings that require a one-page application to qualify for bonding. Quick and simple! At that time, the maximum limits offered by various carriers was $350,000 for a single bond.
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
Over the past two years, there has been a lot of talk about a looming recession. If a recession happens, its severity remains to be seen, but regardless, it is important for contractors to be taking an active approach in building their relationship with their bond company and utilizing the services of a surety specific agent.
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
Contractors may do their work and meet their contractual obligations, but on some jobs it’s harder to get paid than on others. As in any business, your collection activities are key to getting your money. Don’t be afraid to be a squeaky wheel. There are a couple of things I’d like to share as either a reminder, or perhaps an education, that all contractors should know and consider.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
November is the month that I meet with our contractor clients to discuss how the current year will end up and begin planning for the next year. We will also touch base regarding the items our surety carrier partners will want to hear about when we schedule our annual meetings (after the December 31, 2022 financial information is available).
Rancho Mesa's Account Executive of the Surety Department Andy Roberts is joined by Tina Jani, CPA and Partner at Covell, Jani & Pasch LLP, to discuss the Employee Retention Credit.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
The Rancho Mesa Bond Department is currently appointed with twenty-five surety carriers to support our contractor clients with all sizes of bond programs. It is key that the contractor is matched with the correct bond company to ensure timely approval for bonding. For both new and existing clients, we look at several factors to ensure you are partnering with the bond company that will provide the best single and aggregate bond program at the most competitive rate.
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
In my previous article and podcast, “Surety Industry Forced to Innovate,” I discussed a few technological advancements within the surety industry and how the ultimate goal would be issuing bonds to obligees digitally. While that is still some ways off, the technology is here and there are companies and organizations already exploring how blockchain technology may be the answer when it comes to fully digitalizing the surety industry.
Author, Matt Gaynor, Director, Surety Department, Rancho Mesa Insurance Services, Inc.
Currently, all contractors licensed in the State of California are required by the Contractors State License Board (CSLB) to have a $15,000 contractor license bond on file with the state. This amount has been in effect since January 1, 2016.
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
When the surety provides the performance and/or payment bond required by a contract, that contract is the basis of the surety’s guarantee. Simply put, the bonds follow the contract. Because of this, there are a few key things that the surety is going to want to review, and you should do the same. The goal is to make sure you, as the contractor, have everything in place to ensure your success.
Author, Andy Roberts, Account Executive, Surety Group, Rancho Mesa Insurance Services, Inc.
Rarely are the words surety and technology advancement synonymous, and that’s because it’s hard to introduce advancements to an industry where so many obligees still require raised seals and wet signatures on the bonds they are receiving. However, due to some challenges that bond companies, insurance agencies and obligees have faced during the pandemic, the industry is being forced to innovate.
Rancho Mesa's Director of Surety Matt Gaynor interviewed Kevin Carlin of Carlin Law Group on Wednesday, March 23, 2022 to learn about his background, where he started his law career, and current hot topic’s in the construction industry. Kevin is a well-respected construction attorney here in Southern California who represents a number of Rancho Mesa clients.
Author, Andy Roberts, Account Executive, Surety Group, Rancho Mesa Insurance Services, Inc.
With the passage of the Infrastructure Investment and Jobs Act, there is $125 billion of federal funds available for procurement. This provides a significant amount of federal construction work which will be put out to bid, with a vast majority of it requiring bonding.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
When we work with the bonding carriers on surety credit programs for our contractor customers, we traditionally put into place single and aggregate bond limits. This provides our contractor clients certain parameters when they are considering a maximum project size for bonding purposes.
Author, Andy Roberts, Account Executive, Surety Group, Rancho Mesa Insurance Services, Inc.
As a contractor looking to qualify for a contract surety bond program, your team should be aware that company financial statements will be required by underwriters in most cases. This is largely due to the fact that a company’s financials, their balance sheet and an income statement, represent the primary source of information that a surety will use when building a bond program. And, the way this information is presented goes a long way in determining the amount of credit that a bond company is willing to extend. There are a few different options for presenting year-end financials, with the two most common being internal financials and CPA-reviewed financials.
Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.
Rancho Mesa's Director of Surety Matt Gaynor interviewed Vice President of Tokio Marine HCC Surety, Keith Clements on Wednesday, September 15, 2021 to learn about his background, his role with Tokio Marine HCC and how the company fits into the surety marketplace.
Author, Andy Roberts, Account Executive, Surety Group, Rancho Mesa Insurance Services, Inc.
In our current series of articles, we are taking a deeper look into the properties of a balance sheet that will affect a contractor’s bonding capacity. We have previously discussed bonding capacity and summarized working capital in regards to the impact it can have on a contractor’s capacity. However, another very important component on the balance sheet that surety underwriters will consider is net worth, also referred to as equity.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
The project our contractor client was required to bond has been completed and they are looking to get their final payment and collect their retention. But the owner or general contractor is requiring a Consent of Surety document from our contractor. What is a consent of surety and why is this document required?
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