Construction Bonds, Inc. Champions Subcontractors During Tough Times

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Relationships Prove Instrumental in Tight Financial Market

“We recognize the desire for diverse procurement strategies driven by the increasing stress on contractors in today’s financial market,” says Ken Jones, VP and General Manager of Turner’s Mid-Atlantic Region

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Construction Bonds, Inc. (CBI) secures construction bonds when no other agency can. Due to the heightened sense of market risk in our current economic climate, it is difficult for contractors to obtain the bonding they need as a prerequisite to win construction contracts. As conservative as the markets are, sureties are relying on balance-sheet analysis as their main determining factor when approving a bond. CBI helps their client contractors through financial hurdles to earn bonds.

For emerging contractors, compiling a flawless financial report is a daunting task. It can be quite challenging for bonding agents as well. This could be one reason agents are drawn to large, established contracting companies; largely ignoring emerging contractors in favor of accounts with big payouts and less effort. A great many of those neglected contractors are minority-owned or disabled-veteran-owned businesses. Though CBI represents many enterprises both small and well established, the organization is uniquely qualified to assist emerging contractors. CBI’s market intelligence, industry knowledge, surety partnerships and professional relationships position the agency to assist a vastly under-served market.

“We have strong relationships with construction oriented CPAs, attorneys and financial advisors,” says Joshua Etemadi, Sales Manager for CBI. “We also work closely with our surety underwriters, anticipating problems and providing additional information critical to the decision making process. In order to get the best results, full disclosure is very important.” Joshua added, “Contractors often get stuck on bonding application questions they think might show them in a negative light. For example, lack of construction experience as a business owner is a hurdle we can overcome. Examination of an individuals prior experience and developing a business plan allows us obtain bond approvals. That is why it is so important they see us as a trusted advisor.”

Another relationship that has helped CBI is the one they have with Turner Construction Company. CBI teaches the bonding sessions for the Turner School of Construction Management’s Mid-Atlantic programs. The workshop focuses on the components of a strong company and the ways contractors can get there. “We recognize the desire for diverse procurement strategies driven by the increasing stress on contractors in today’s financial market,” says Ken Jones, VP and General Manager of Turner’s Mid-Atlantic region. "Over 90% of our subcontractors are required to provide surety bonds. Given Turner's culture of maximizing inclusion on our projects, it has been great having CBI as a partner who helps facilitate our needs for risk management."

These bonding sessions are an integral part of the Turner School of Construction Management, currently taking place in Richmond, Virginia. The Richmond class of eligible contractors will graduate on the 28th of November.

About Construction Bonds, Inc.
Construction Bonds, Inc. (CBI) is the number one resource for bonding in the Mid-Atlantic and advocates for emerging contractors. CBI moves contractors up market by increasing their “bondability” through education, resources and key relationships. CBI is the first bonding agency to receive the U.S. Small Business Administration’s (SBA) Producer of the Year Award. Construction Bonds, Inc. is a subsidiary of Murray Securus. To learn more about CBI, visit http://sbabonds.com

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Amanda Fischer
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