First Sealord Surety Insurance Company, a surety company in Villanova, Pennsylvania, was hit hard during the economic downturn. At one time, the firm bonded general contractors and subcontractors in 39 states, but as the economy slowed, the company was forced to stop issuing bonds completely. According to PA Insurance Commissioner Michael Consedine, “First Sealord Surety [...]

On February 9, 2012, NASBP CEO Mark McCallum testified before a U.S. Congressional hearing of the House Small Business Committee on the SBA Surety Bond Guarantee Program, and the Security in Bonding Act of 2011, among other issues. Please click play in the video clip below to watch Mr. McCallum’s opening remarks:

It’s very important to keep your surety current with up-to-date information so that your company never risks losing a time-sensitive bid or contract, that’s subject to bonds. And don’t think that just because your company is the local favorite you’ll be awarded the newest city projects. Normally, local jobs still require bonds by ordinance and [...]

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Did you know that in Texas, company officers that misuse trust funds can be held personally liable? The Texas Trust Fund Statute (Texas Property Code Section 162) imposes both civil and criminal liability on any individual officer who violates it. The new law enforces payment to contractors and subcontractors for labor and materials used in [...]

Six new laws have effectively changed the game for Texas subcontractors. Last year, Governor Rick Perry signed off on the new legislation to help improve the public-policy environment for construction subcontractors – it has worked. Since June 2011, Texas has moved up from position number 29 to position 10 in the American Subcontractors Association’s (ASA) [...]

Subcontractors play an extremely important role in the construction industry. When hiring them, general contractors are able to diversify, and in many cases, significantly improve the overall skill set of their crew for various construction projects. In addition, there is significant cost savings associated with hiring subs on a per-project basis. However, the construction industry [...]

When bidding a job, contractors often choose to bid with a cashiers check in lieu of a bid bond. Often, project owners require this type of bid security to cover any costs associated with a re-bid (if necessary), or to pay the difference for using the next lowest contractor. However, this method can pose significant [...]

The most common question asked by subcontractors is “when will I get paid?” … and rightfully so. Subcontractors don’t always give the kind of attention they should to language in project contracts. There is a big difference between the terms ‘paid-when-paid,’ and ‘paid-if-paid,’ for example. Don’t know the difference? You’re not alone. Most contractors and [...]

For every business, big or small, hiring new employees is one of the most important and difficult decisions to make. Sure, you or the HR department can evaluate potential candidates objectively, run background checks, and call for references, but you can never be entirely sure that the new employees you hire are trustworthy and responsible [...]