Commercial contractors need surety bonding to build trust with clients, meet regulatory requirements, and manage project risks. Surety bonds act as a financial guarantee that the contractor will perform their duties according to the contract terms. Here’s why surety bonding is especially important for commercial contractors: Assurance of Project Completion: Surety bonds guarantee that the contractor will complete the project as per the agreed terms. If a contractor defaults, the bond… Read More
Increasing Bond Capacity For Commercial Contractors
Increasing bond capacity is crucial for commercial contractors looking to take on larger projects or more projects concurrently. Bond capacity depends on a contractor’s financial stability, experience, and project management practices. Here are some steps contractors can take to increase their bond capacity: 1. Strengthen Financial Statements Enhance Working Capital: Working capital (current assets minus current liabilities) is a major factor in bond capacity. Contractors can increase working capital by… Read More
Streamlining The Estimating Process and Getting The Data Entered In QuickBooks Online
Creating a comprehensive construction estimate that includes materials, subcontractors, and labor is essential for effective project management. Utilizing Excel templates can streamline this process. Here are some free templates tailored for construction estimates: These templates are customizable to fit the specific needs of your project, ensuring that all aspects of the estimate are covered comprehensively. Create and Send Estimates in QuickBooks Online quickbooks.intuit.com Creating estimates in QuickBooks Online Advanced allows… Read More
Tech Stack For Contractors To Streamline Their Workflow
Integrating QuickBooks Online with specialized applications can significantly enhance workflow efficiency for small contractors. Here’s a breakdown of key integrations to consider: 1. Project Management and Job Costing 2. Time Tracking 3. Estimating and Invoicing 4. Inventory and Material Management 5. Scheduling and Field Management 6. Customer Relationship Management (CRM) 7. Payment Processing By integrating these tools with QuickBooks Online, small contractors can create a cohesive system that manages projects,… Read More
How Contractors Can Increase Bond Capacity With Internal Accounting
Many contractors view accounting as a necessary evil that they would prefer to avoid at all costs. Having a well defined accounting process, back office system that can help get financials in a timely fashion which further helps in developing a construction company and strengthen the bond capacity. Financial data is used by surety firms in a few key ways to assess a contractor’s bonding capacity. Assessing your ability to… Read More
KPI’s and Ratios Sureties Look For
Surety underwriters play a critical role in evaluating a company’s financial health and capacity to fulfill bonded obligations. They scrutinize several key performance indicators (KPIs) to assess the risk involved. Here are the five main KPIs that underwriters typically focus on: These KPIs provide surety underwriters with insights into a company’s financial stability, ability to manage projects profitably, and overall risk profile. Companies seeking bonding should maintain detailed and accurate… Read More