The majority
of our clients fall within standard Contract Bonding Program
Guidelines. These are generally larger contractors who perform
individual projects in excess of $250,000 and who require total
bonding capacity in the tens of millions of dollars.
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At
King Surety we understand the great importance that contract bonding
plays in the construction process. We understand and take very
seriously our role in that process. We understand the need for quick
and reliable bonding services. We know that time is ALWAYS
of the essence and we respond accordingly.
Whether it's a single large bond
request, the establishment of a Bond Line, or an increase in
your your existing Bond Line, we know what to do and how to do
it -- and with the bonding company most likely to respond favorably
to your need under reasonable terms and at a fair premium. We
know of too many bond underwriters who find it much easier to
say "No" than to invest the time and effort that is
sometimes necessary to get your bond written. |
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We work under the
simple principle, "Never let our clients down! Be prepared
to do whatever it takes to get the job done!"
We have assembled a staff
of top bonding professionals who, with nearly seventy five years of
contract bond experience among them, are without equal in their ability to
underwrite and place bonds -- from the smallest to the largest,
both standard and non-standard.
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We have long established
relationships with more than twenty major bonding companies who
know us, and who respect our expertise and integrity, two very
essential ingredients to a successful bond relationship. They
know that a bond submitted by us includes information that has
been carefully researched, verified, analyzed and presented in
form and format that will enable them to make give a quick and
most often favorable response to our request.
GUIDING OUR CONTRACTOR
CLIENTS
We spend a great deal of
time educating our contractor clients in the methods and logic
of surety company thinking. We believe that a clear understanding
of its own bonding status and capacity is essential to any successful
construction company. We carefully explain the hows and whys
of surety company analysis and underwriting. We feel that contractors
must know exactly where they stand with the bonding community
and why. If there is need for improvement, we show them where
and how that improvement can be made. In the world of contract
bonding, knowledge is most definitely power.
BOND LINES OF
AUTHORITY
In all cases we attempt
to arrange formal Bond Lines of Authority for our contractor clients.
These are formal commitments from bonding companies to provide
bonding within a certain maximum job size and total work program.
Generally, a Bond Line is designed to handle about 90% of normal
bonding needs. They are intended as guides rather than maximums,
and provide us with the ability to respond immediately to all
normal bond requests. In the case of requests exceeding the Bond
Line, we quickly gather the necessary data for submission to
and review by the bonding company.
COMPETITIVE BOND
PREMIUM RATES
While we like to view our
exceptional bonding services as "priceless" - we are
still realists! We realize that our contractor clients are operating
in an extremely competitive environment and so regularly offer
the lowest available bond rates. What income we may loose to
low rates is more than offset by the loyalty of our many long
term bond clients.
If you would like
us to consider your bonding needs and would like to be contacted
by one of our Bonding Specialists, please furnish the following
data:
All Information
is Handled as Strictly Confidential
NOTE:
Please use
"tab" key, NOT the "enter" key to move through the following
responses.
At present
our services are available in Pennsylvania, New Jersey, Delaware and
Maryland ONLY
Or, if you are
uncomfortable sending this data over the Internet, feel free
to FAX it to us at 215-793-4001 or call us at 215-793-4000 or,
outside 215/610 areas, call toll free 877-657-9050
CONTRACT BOND
UNDERWRITING
STANDARD
DATA REQUIREMENTS
In order for us to fully
underwrite and evaluate your firm from a contract bonding standpoint,
we will need at least the following data:
COMPANY FINANCIAL
STATEMENTS
We require copies of your three most recent CPA prepared year end financial
statements for analysis. Hopefully, these statements will have been
"reviewed" by your Accountant rather than as simple "compilations." It
is recommended that your financial statements recognize income on the Percentage of Completion,( as contrasted
with a cash or simple accrual), basis.
Unless your statements
are fully audited by your Accountant, we will also need the following
supplemental data:
- Aged listings of Accounts Receivable
and Accounts Payable prepared concurrently with your most recent year end
financial statement. These should include account names, addresses, and amounts
due.
- A breakdown of your Cash
in Bank as of your most recent fiscal year end including the
bank names, addresses, account numbers, and account balances.
- It will also be helpful
if you will send us any recently prepared interim financial statements.
In-house Balance Sheet and Income Statement is usually
adequate however CPA prepared three or six month statements are preferred.
PERSONAL FINANCIAL
STATEMENTS
We will need recently
prepared Personal Financial Statements for all company principals. Forms for
this purpose are available.
CONTRACTOR'S SURETY
SURVEY
This general data form
should be completed in as much detail as possible. A form will
be provided via email or FAX.
Feel free to call us with questions regarding the completion
of this form.
SCHEDULES OF CONTRACTS IN PROGRESS
These reports, showing
the status of various of your jobs in progress as of a particular date, should be
furnished concurrent with your most recent financial statement date and also
as of a current date. Forms are available via email or fax. These should be completed
in as much careful detail as possible and as accurately as possible. You
should, of course,
feel free to contact us with any questions regarding the completion
of this form.
We recommend our "user friendly" Schedule of
Contracts in Progress that has been designed using Microsoft EXCEL in a
simplified format that requires only your individual contract amounts, costs
to date, billings to date and your best estimate of actual costs to
complete. The remainder of the form - your estimated gross profit,
over and under-billing and job borrow for example - pre-fills. The
form has been designed using formulas provided by the American Institute of
Certified Public Accountants and provides an accurate picture of a
contractor's operations based upon percentage of completion considerations.
BANK LETTER OF CREDIT
We will need a copy of
a letter from your bank confirming your line of credit, its terms and the
amount currently in use.
CERTIFICATE OF INSURANCE
The bonding company will
wish to verify the existence and adequacy of your current insurance
coverage.
INCOME TAX RETURNS
We will need a copy of your 1120 or 1120S federal income tax return for your
most recently completed financial year. Generally the first eight or ten
pages are adequate.
ADDITIONALLY HELPFUL DATA
Always helpful are copies of company
brochures, resumes of key employees, lists of largest completed project,
owner and architect references - anything that will help to complete our
picture of your company.
Of
course, all of the above information will be held in the strictest
of confidence and will be used only in connection with the underwriting
of your firm for contract bonding purposes. It will be returned
to you upon request.
We
hope that you will not hesitate to contact us with any questions
regarding the preparation of the necessary underwriting data.
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