As a contractor, you know better than your surety what is happening in the construction marketplace. You see certain contractors who are so desperate for work that they are bidding work at unprofitable levels just to keep their crews busy. You know that a contractor cannot sustain their operations with unprofitable work. You also know that a contractor cannot sustain their operations with a low volume of work unless they cut overhead. So, you know there are problems on the near horizon for many contractors.
When those problems start to hit the claims departments of surety companies, somebody is going to hit the red button in the underwriting department and a possible overreaction of emotional underwriting will ensue. How do I know this? This is probably my fourth major downturn in construction. I’ve seen it before. Not every surety will panic, nor will any surety panic all the time. But you don’t want to be talking to the underwriter who is having a very bad day. Since all we do is bonding, we can sometimes settle down a fearful underwriter much like the “Horse Whisperer” by using reason and stating calm facts. Otherwise, we are very fortunate to represent so many fine surety companies that allow you quick access to a more relaxed market. Give us a call if you would like a confidential back up.