Navigating the Build America, Buy America Act: Implications for Construction Bonds and FHWA Compliance
The Build America, Buy America Act (BABA) has introduced significant changes to the procurement policies governing federal funding for state and local construction projects. As the most extensive domestic preference law in U.S. history, BABA mandates that all federally funded projects use American-made iron and steel, manufactured products, and construction materials. For those in the… Read more
10 Key Concerns to Know About Surety Bond Underwriting
Surety bond underwriting involves the pre-approval and evaluation of two primary performance requirements. These requirements, determined by the principals, are assessed to evaluate their risk level. The underwriting process encompasses a variety of concerns. Here are 10 key underwriting concerns you should be aware of: It is crucial to address these concerns before proceeding with… Read more
History of Surety Bonds
Surety bonds have been a significant part of the commercial landscape for over a century. In fact, the concept of suretyship—providing guarantees—dates back several centuries. Although surety bonds are classified as a form of insurance due to capital requirements, they function more similarly to a banking instrument. This is because a contractor must qualify for… Read more
Understanding Contractor License Bonds and Permit Bonds
When you’re navigating the world of contracting and construction, understanding the different types of bonds can be crucial. Among these, Contractor License Bonds and Permit Bonds stand out for their role in ensuring compliance and ethical practices. This article describes these two bonds, explaining their importance and how they function within the industry. What are… Read more
Optimizing Construction Site Safety with Effective Safety Walks
Construction sites are inherently risky, with ever-changing environments requiring vigilant safety practices. Safety walks are crucial for identifying and addressing potential hazards before they escalate. These routine inspections help ensure worker safety and compliance with regulations. Key components of a safety walk include: Safety walks are a routine check and a cornerstone of a comprehensive… Read more
Key Points on Complying with State Law When Forming a Joint Venture
Understanding State Law Requirements for Joint Ventures As highlighted by PilieroMazza, small business joint ventures (JVs) aiming for set-aside work must adhere not only to Small Business Administration (SBA) JV regulations but also to relevant state laws. A recent ruling by the SBA’s Office of Hearing and Appeals (OHA) underlines the critical importance of this… Read more
Understanding Mortgage Broker Bonds in Michigan
In the complex world of real estate finance, maintaining integrity and trust is crucial. In Michigan, one of the key tools for ensuring these principles in the mortgage brokerage sector is the Mortgage Broker Bond. This type of surety bond plays a vital role in protecting consumers and ensuring that mortgage brokers adhere to state… Read more
Tennessee Bankruptcy Court Decision: Impact on Surety Bonds
A recent ruling by a Tennessee bankruptcy court highlights a critical issue for sureties issuing bonds. Despite clear indications that bonds are intended to be statutory, this court case demonstrates that such designations might not always hold. Case Overview In this case, the surety had issued payment bonds for two public works projects on behalf… Read more
Significant Updates Implemented in Davis-Bacon and Associated Federal Wage Laws
In a major regulatory update, the U.S. Department of Labor has revised the rules under the Davis-Bacon Act (DBA) for the first time in nearly four decades. These changes, impacting a suite of federal wage laws applicable to contractors on federal construction projects, aim to improve clarity, consistency, and enforcement effectiveness. The updated rules, which… Read more
Construction Bidding Season is Near; Are You Prepared?
We are fast approaching the construction bidding season. Contact Construction Bonding Specialists, LLC – we are ready to guide you through pre-qualifying for your bond applications for municipalities, schools, and public works that will soon be opening. Our specialty is helping you secure the construction bonds you need. We’ll decipher the paperwork and make recommendations… Read more