Contract Surety
What is Contract Surety?
Third party guarantees of your construction contracts
Contract surety provides the owner of a project the security that your organization has been underwritten and deemed financially and technically capable of completing the project and the contract is guaranteed by the surety company.
Having a surety facility in place will open up bidding opportunities. Many owners, including all municipalities, are now requiring this type of security as part of their contract requirements.
Benefits of Contract Surety
Bid opportunities
Applying Contract Surety
What credit facility do you need?
We work with you, your broker and your accountant to fully understand the financial position of your organization, define what bonding facility is required and determine what is impeding securing the desired support.
Some instances it’s as simple as re-presenting the financial statements, and other times it requires developing a strategic plan to change aspects of the business and plan for a future facility.
A client was struggling to establish a surety facility due to an awkward organizational structure and recommendations from his accountant for tax purposes. We spent the time with the accountant and the contractor to restructure the organization and capture equity and working capital to secure the surety facility, but still allow the organization the flexibility to manipulate the tax planning opportunities.