Interesting times we are going throuht.  While not a hot topic in the surety world more attention is being paid to the banks construction firms use.  With funds easily exceeding FDIC insured amounts the concern is less about maintaining lines of credit and more about waking up some morning to find out you just lost hundreds of thousands of dollars because your bank shut down and you were over FDIC limits. 

Another real concern is the banks your general contractors are using.  I’m sure your confident you work for strong GC’s.  Well hopefully those general contractors are also using very strong banks and taking measures to protect the large progress payments they receive and hold.  If something were to happen on that end the financial impact on subcontractors could be devastating. 

Keep an eye on your institutions and take precautions to protect your money.  If possible, and we know it is hard, make sure your progress payments are being held in a strong institution as well.

This entry was posted on Thursday, October 9th, 2008 at 7:09 pm 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.