In the more than 100 years since modern corporate surety has been established, some of the largest corporations of today accelerated their growth when they established a surety relationship and added their professional surety agent to their small group of independent advisors. Along with their attorney and CPA, the professional surety agent brings considerable experience and knowledge on corporate financial and successful bid strategies.
Your professional surety agent has seen how similar businesses have profitably bid, won and completed larger jobs. The surety agent understands what is expected by both the surety company and the entity putting out the bid.
Some might say it is easy to increase your surety capacity to the next level, but that is rarely the case. It takes planning and effort. Most importantly, it takes understanding what the surety underwriters are looking for in order to approve the leap into larger bonded work.
Yes, you need to have shown the ability to successfully manage the bonded work in your current program with good profit margins that don’t fade. You also need to have a good financial presentation prepared that reflects the profit stream from those jobs and also displays your continued efforts to retain and grow the company working capital and net worth.
Beyond these key factors, it is your professional surety agent that can help guide your firm in reaching the larger work program goals. Your surety agent should be communicating regularly with your CPA who is experienced in generating construction accounting financial statements in a form and format preferred by the surety underwriters. Your experienced surety agent should work hand in hand with you and your staff as you complete your current work and start to focus on the future jobs you intend to pursue.
The successful construction executive aligns with a strong independent advisory team of an experienced construction attorney, construction accounting firm and a professional surety agent. When added to your own professional staff, this team provides the insight and support that makes the path to larger bonded contracts seem easy.