EMERGING CONTRACTORS PROGRAMS
A contractor's ability to secure work, especially in the public sector, will be limited if he or she is unable to obtain a bid, performance, and payment bond. Technical Assurance recognizes this and is committed to helping new and emerging contractors obtain their first bond, increase surety capacity, and ultimately build a better business.
To accomplish this, we support and have subscribed to several programs designed specifically for emerging contractors; programs that offer the resources they need to increase contracting opportunities, and compete for market share.
Express Bond Program (Surety On-Line)
Express Bond Programs are designed specifically for contractors with infrequent surety needs and is the easiest and quickest way to get bonded. Your application will receive priority processing, generally within 24-48hrs., and the underwriting will be limited, in some cases, to your personal credit history.
Developers Surety - Insco Xpress Application - IXC is for contractors seeking bonds for single jobs up to $200,000 with aggregate bond work programs up to $400,000.
Suretec - SureQuick Express Application - Surequick can bond single jobs up to $100,000 with the one page application and up to $500,000 with minimal supplemental information.
Note: Express bonds cover most classes of construction with the exception of environmental or hazardous material abatement, completion, subdivision or multi-year contracts. Bond rates for the Express Bond Program is 3% of the contract price up to $100,000 and 2% of the contract price in excess of $100,000, (premium totals are subject to a $500 minimum).
Small Business Administration
The U.S. Small Business Administration (SBA), can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and/or emerging contractors who cannot obtain surety bonds through regular channels. SBA’s guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor’s ability to obtain bonding and greater access to contracting opportunities.
Funds Disbursement Services is a program whereby a contractor’s accounts payable functions are outsourced on a per-project or programmatic basis. It has proven to be a credit enhancement tool, an evaluation tool for contractors with limited experience, and an underwriting tool that allows a surety to extend or expand surety credit in certain circumstances. Funds Disbursement Services may be used in any situation where it is important that funds remain dedicated to the project on which they are earned.
When two or more companies wish to combine for a project or group of projects, a Joint Venture provides the flexibility to accomplish these goals.
Joint Ventures are in essence, a partnership between two construction companies, and are formed to leverage the particular expertise, capacity, resources and talents of the various partners--as well as to share the risk, combine financial resources, and obtain financing or bonding. Profits and losses can also be allocated between the partners in ways that reflect the partners' relative economic interest in the venture.
Technical Assurance supports joint ventures as it allows contractors to take advantage of certain opportunities that might not be available on a stand alone basis. There are, however, many complex tax and business issues that should be addressed in the formative stages.