an estimator’s guide to understanding contract surety academy... · mike kelly, risk consultant...
TRANSCRIPT
![Page 1: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/1.jpg)
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An Estimator’s Guide to
Understanding Contract Surety
Presented By: Mike Kelly & Tom Latz
Thomas McGee, L.C.
February 1, 2013
![Page 2: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/2.jpg)
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Contract Surety Bonds
• Bid Bond
• Performance Bond
• Payment Bond
![Page 3: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/3.jpg)
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Who Requires Bonds?
• Public Sector
– Federal Government
– State & Local
Governments
![Page 4: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/4.jpg)
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Who Requires Bonds?
• Private Sector
– Private Owners
– Lending Institutions
– General Contractors
![Page 5: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/5.jpg)
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Principles of Contract Surety
Surety
Obligee Principal
![Page 6: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/6.jpg)
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Prequalification
Financial
Strength Character Experience
Equipment Credit
History
Banking
Relationships
![Page 7: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/7.jpg)
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Prequalification
Capital
Capacity
Character
![Page 8: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/8.jpg)
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Prequalification
Capital Financial statements
Working capital
Work-in-progress
Indemnity
![Page 9: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/9.jpg)
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Prequalification
Capital Financial statements
Working capital
Work-in-progress
Indemnity
Capacity Resumes
Contingency plan
Business plan- short &
long term
Equipment
![Page 10: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/10.jpg)
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Prequalification
Character Reputation
Relationships
References
Capital Financial statements
Working capital
Work-in-progress
Indemnity
Capacity Resumes
Contingency plan
Business plan- short &
long term
Equipment
![Page 11: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/11.jpg)
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Benefits of Surety Bonds
• Qualified bidders
• Reduced risk of liens
• Timely project completion
• Defect protection
Owner
![Page 12: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/12.jpg)
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Benefits of Surety Bonds
Contractor
• Contract reviews
• Continuity plans
• Expertise
• Project qualification
• Private construction
• Lending institutions
• Subcontractor protection
• Technical, managerial, financial assistance
![Page 13: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/13.jpg)
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Additional Items
![Page 14: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/14.jpg)
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Additional Items
![Page 15: An Estimator’s Guide to Understanding Contract Surety Academy... · Mike Kelly, Risk Consultant mkelly@thomasmcgee.com (816) 843-4439 Tom Latz, Risk Consultant tlatz@thomasmcgee.com](https://reader035.vdocuments.mx/reader035/viewer/2022062605/5fc6b2de70f431411027551a/html5/thumbnails/15.jpg)
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For More Information
920 Main Street, Suite 1700
(816) 842-4800 | Toll Free (800) 423-9044
www.thomasmcgee.com
Mike Kelly, Risk Consultant
(816) 843-4439
Tom Latz, Risk Consultant
(816) 843-4481