We have been witnessing a significant increase in bond requests on bank financed commercial construction projects.  These projects have been as little as $5 million in construction value.  The tricky part is the banks don’t seem to care if the developer or contractor being hired posts the bonds.  This has led to some complicated situations of trying to get completion bonds done for developers and also trying to qualify some contractors for performance and payment bonds that have never had to worry about this prior. 

If you are a developer or developer-builder, be aware that the market for a completion bond is limited, and it will take some time to underwrite the process.  Don’t wait until the last minute to begin engaging a broker and surety in the process.

If you are a general contracting pursuing commercial work that is typically not bonded but bank financed, then keep your eyes open and ask if the bank is requiring any sort of bonding.  If you have not bonded before, the volume of information requested by the surety will be significant and it will take some time for the surety to sort through your information. 

This entry was posted on Tuesday, August 12th, 2008 at 10:05 am and is filed under Michael Strahan Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.