Masonry Magazine October 1992 Page. 31
Sureties Offer Credit, Not Insurance
The function of a surety is to prequalify a contractor, guaranteeing that he will be able to fulfill his obligations under a construction contract.
By Shelia Wirtz
Berkshire Consulting Group
SURETY COMPANIES offering bonds to construction contractors are really offering credit similar to bank credit, not insurance. With a bond, a surety company and applicant join together to guarantee financial protection of the assets of a third party; the bond doesn't protect the applicant's assets, as insurance would. Further, in writing a surety bond, no loss is expected; with insurance, the premiums from many insured parties provide a reserve to pay for some expected losses.
H. Donald Peterson, an agent specializing in surety bonding and insurance for contractors, said that the function of a surety is to prequalify a contractor, guaranteeing that the contractor will be able to fulfill his responsibilities under a construction contract. He spoke at the Construction Contractor Conference sponsored by the Illinois CPA Society.
To obtain bonding, a contractor must provide sound financial income to the surety, Peterson said. "A credit-worthy contractor can be turned down if the documentation is sloppy," he said. It's important to choose a professional bonding agent who will not "shop" the contractor's account and a construction-oriented accountant who will provide the information in the format expected by the surety. Sureties also like to see contractors use banks that are experienced in construction.
It's important to develop a relationship with a solid surety. The U.S. Treasury Department offers a list that rates bonding companies on their financial strength. The Best Guide is another source of information on sureties.
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Weck glass block has once again expanded the assortment of special shapes. The new Allbend blocks allow tight but graceful turns and angles in increments of 22½° which previously could only be accomplished in wide arcs.
Snaking effects can be created by reversing the Allbend and arcs widened by intermingling the Allbend with 4 x 8 or 8 x 8 blocks. 45° corners can be beautifully constructed with 2 pieces of Allbend.
The new Double End block when combined with the WeckEnd block permits partitions with open heads and jambs. Even step down construction without the use of other border materials is possible and only from WECK. WECK's new finished edge on the WeckEnd or Double End is the cleanest in the industry.
Glashaus Inc.
415 West Golf Road
Suite 13
Arlington Heights, IL 60005
708-640-6910
FAX #708-640-6955