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Modern Technology In The Construction Industry

Technology is a fact of life in this day and age. Everywhere you look you see a smart world: smartphones, smart homes, smart TVs, smart cars — it’s all smart technology. This has even moved into the construction industry, but it’s surprising how many construction companies are still using outdated equipment, technology and even methods to run their business. In this day and age, if you aren’t adapting, you’re fading away, and a company that doesn’t keep up with the times can get left behind at lightning speed.

That’s why it’s important for entrepreneurs and managers to always stay up to date on the latest technological innovations, not just in their own field, but across the board. Learn why you need to stay abreast of the latest technology, find out how other businesses are using it, and think about how you can apply it to bring your construction business into the modern era.

Technology and the Future of Business

Before we look at the relationship between technology and the construction industry specifically, let’s look at how it affects the future of business practices in general. Collaboration and constant connection are the key factors in successful business these days. Connectivity has replaced bureaucracy and the constantly spinning gears of the old days. Aggressive management has been left behind in favor of collaborative leadership. Like it or not, this is the way business is moving in the future, and construction companies that embrace it will gain a leg up on the competition.

Increased connectivity is essential to your operations in this day and age. Technology has broken down both personal and geographic barriers, and we live in a global workplace. Traditional offices are becoming obsolete, as are business meetings, which are slowly being replaced by video chat and online collaborations.

Companies are also approaching their relations with employees in a different way, offering more incentives and benefits, such as training and mentoring, as well as more flexible scheduling that allows employees an improved work-life balance as opposed to the traditional nine-to-five work day. Perhaps the most difficult change is that employees are becoming more transient than ever, and companies are learning to accept that people will move in and out as they search for the best fit for them, while also looking for the best ways to attract and keep top talent.

Innovation and the Modern Business Environment

Innovation isn’t the wave of the future — it’s the wave of the present. Since the World Wide Web went online in 1991, innovation has grown at the speed of light, spurred by increases in information technology. In short, innovation spurs innovation, creating an exponential rise in new approaches, new thinking and new technology. By the time a technology becomes standard, it is rendered obsolete by the latest technology.

If your business hasn’t adopted solutions like cloud computing, VoiP communication, social networking and other modern technologies, you may already have been left far behind. Innovation will accelerate the growth of your business. It will give you the tools to solve evermore complex problems, it will allow you to better audit your practices and make better conditions, and it will improve your marketing and communications, customer support, and resource management at all levels.

New technologies allow you a constant communication with your customers and an improved method of providing for their needs. They allow you to make data-driven decisions that will improve performance across the board, and they allow for an unprecedented degree of operational transparency.

Changing the Core of Business

The importance of digital transformation in business cannot be understated. As social media, mobile devices, and other real-time technologies align to change the world we live in, they are creating bigger changes than anyone could have anticipated, and these things have become a priority for organizations at the forefront of their industries. Customer-driven approaches and improving customer experience are critical in these efforts.

Those companies that are looking to rise to and remain at the forefront of their industries must embrace this digital transformation. This transformation can only be effective with support from leadership, and it must be focused on both optimizing the customer experience and on training your crew at every level to embrace the new technologies.

Technology has changed the way we all think and process information. From design tools that have impacted drafting, engineering and architecture to customer portals that expedite communications and contracts, technology is everywhere. Formal meetings with architects and engineers are no longer needed — blueprints can be digitally shared and comments instantly communicated.

Customers can get immediate status updates and have any questions or concerns addressed right away. Record keeping is thorough, transparent and immediate. All of these factors have a huge effect on construction and contracting projects. They allow for easier and more varied subcontracting via digital communications. It’s essential for any business to adapt to the new technology and to enhance their operations at every level, from the CEO to the office assistant to the skilled on-site worker.

Technology and the Construction Industry

Technological advancement is a fact of life across the board, and the construction industry is no different. Even so, far too many construction companies are conducting business the same as they have for decades. A survey conducted in 2017 revealed that although over 70% of those surveyed agreed that technological innovation was essential to their business, less than 50% had any kind of real strategy in place to adopt advancements. In fact, only 5% felt that they themselves were leaders in embracing technology, and the majority adopted technology only after their competition did so.

While leaders across the industry are aware of the importance of technology adoption, too many haven’t actually taken the steps to do so. Far too few are eager to do so, largely due to fear of the unknown.

In truth, technology in the construction industry will help to: reduce on-site accidents, better organize your projects, resonate with your millennial workforce and keep you competitive in the field. Change is coming, and it’s better to adapt now than later.

Creating a Safer Work Site

It’s no secret that construction is among the most dangerous professions around, with thousands of serious and fatal accidents occurring every year. From slip-and-fall injuries to equipment malfunctions, contact with hazardous chemicals or injuries from falling debris, the potential for accidents is great. Technology, however, can help you toreduce those dangers greatly.

Drones and robots, for example, are becoming increasingly popular in the industry and can complete tasks that present danger to humans, including scouting and surveying dangerous locations, such as dark areas, heights or difficult-to-access regions that are tough to navigate. This gives you greater surveillance and stronger oversight. Robots can monitor safety situations, generate reports and even take on some tasks that are too dangerous for human workers to tackle, such as dealing with toxic waste.

Wearable devices that can track your workers’ biometrics, their GPS location or environmental factors can also keep you and your workers informed when potential risks get too high. This can enable a worker to escape a dangerous situation before the risk results in harm. Some of these devices even allow a worker to remotely call for help if they need it.

Organize Your Projects

Project management has always been an issue on construction sites. Keeping track of where a project is at every stage and adequate record keeping are challenges that in the analog age were difficult to meet. Modern project management software, however, has changed that. It’s easy now to keep track of your scheduling, budget, status and records with the click of a mouse or the tap of a screen, and to instantly generate detailed reports that are precisely tailored for your staff, your management or your clients.

These systems are built to help you integrate your entire project into a single location. They vastly improve productivity, transparency and efficiency. Yet, according to the above-cited survey, a mere 8% of those surveyed are using such a system. While high-end versions of this software can be quite expensive, there are also less expensive, scaled-down versions that can still increase your effectiveness, and it’s always possible to build to larger systems later.

The Millennial Workforce

There’s no question that the gap between the outgoing baby-boomer workforce and the current millennial workforce is huge and constantly under discussion. The expectations and work ethic of millennial workers are far different than those of boomers. Fewer millennials are entering the construction industry, and as more boomers retire, a worker shortage could potentially occur. That means it’s essential to connect with these younger workers, and technology is the means by which companies can do that.

Millennials are dependent upon technology. They are the first generation to grow up with tech as an integral part of their lives, and that means that your business has to meet those needs. Millennials need to access information and documents instantly, which makes connectivity and cloud computing essential to your operations. Millennials want instant feedback, efficient processes and instant gratification, and while that may not be traditional, it is necessary to continue to attract workers.

Transforming the Industry

The Internet has completely changed the way construction companies do business. Without it, we have no cloud computing, no project management software and no communications hubs. It allows easy means to build, design and monitor all of your projects and is the core foundation for all of the innovations that follow. Every smartphone app that wirelessly accesses information or controls something is based in internet technology.

The importance of technology in the construction industry, such as blueprint and design programs like CAD software cannot be understated. No longer are draftsmen, engineers and architects tied to tables with massive sheets of paper and piles of pencils. Designs can now be generated on a computer with advanced tools to cover all aspects of virtual building and construction.

No more will you experience the need for a separate file room full of piles and boxes of paper files through which you have to dig in hopes of finding a single record. Now your tablet, laptop or smart device is your means to access everything you need from a virtual file room. You’ll be able to examine a blueprint as a 3D model, looking over every single aspect of the design and correcting problems before physical work begins. Your designs can integrate physical, civil, electrical and structural schematics into one integrated model so you can see just how everything will play together.

Off-site Construction

One of the most innovative approaches to the industry that owes everything to technology is the idea of off-site construction. This is an approach by which repetitive elements of a project can be designed off-site in a factory-like setting. It’s most often used in projects where each floor has the same design schematic, such as an apartment building, hotel or school, and it uses an assembly-line method of construction that increases productivity and reduces waste.

In the industry, these off-site techniques are often referred to as modular construction or prefabricated construction, and they encompass everything from a bathroom to a living space. When a given module or building component is completed, it’s sent to the construction site, where your on-site workers insert and assemble it or secure it to the frame.

Virtual Reality

Another way that technology in the construction industry is enhancing safety is through the use of augmented or virtual reality. This technology allows training in a controlled environment where dangers are virtual instead of real. VR can create exposure to confined spaces, working with heights or other dangerous situations, but without the risk of an uncontrolled environment. Such simulators have been used for years in the training of professionals from surgeons to pilots, and they are now making their way to skilled trades and construction.

Augmented reality allows for the creation of more detailed safety plans, for training on heavy equipment and for a range of other efficient and effective training scenarios. Simulators can also be used on-site, For example, AR systems can allow for the viewing of safety or job checklists via projectors in a helmet or glasses, and they allow for the monitoring of workers.

Green Construction

Since the 1960s, recycled rubber has been used to create more efficient, less expensive asphalt that reduces landfills and lowers material cost. Recently, technology has allowed the use of materials like recycled bottles and single-use plastics in asphalt admixtures. It’s even possible to create snap-together blocks that are recycled from other materials and fit together much like LEGO blocks, and recycled printer toner may be used in asphalt mix. A study out of Australia even indicates that using cigarette butts can improve the quality of roadways.

Concrete printers have allowed the use of technology to create entire bridges out of commercial on-site 3D printers. The advantages of this approach are countless and will improve the efficiency of construction processes in the future while simultaneously reducing costs.

A Competitive Edge

The 2017 survey is an indicator that it’s not too late to adopt the most modern technology in the construction industry to gain a competitive edge. From transparency in operations to instant communications and 3D printing that can allow you to quickly prototype concepts, technology is a must for your company to stay ahead of the game. Technology also allows a sustainable future in an era when climate change and green living are more important than ever. It can reduce the amount of materials you go through, and it can help you to create green buildings for your customers.

Surety Bonding With National Surety Services Inc.

Technology in the construction industry has even improved the process of surety bonding. In days gone by, the process of getting bonded might have involved mountains of paperwork followed by a number of meetings and phone calls and weeks of background checks. Today’s technology allows for online application processes and a lightning-fast turnaround of just a few days.

Results-oriented and -driven companies like National Surety Services Inc. can help you grow your business rapidly while getting you the surety bonds you need. Whether it’s a payment or performance bond to stay in compliance with Miller Acts or Little Miller Acts or an SBA bonding program to allow your small business to bid against larger competitors, we can help get you going.

We bring over 25 years of successful service in banking, business and construction to the table. We are experienced experts in all aspects of the surety industry, and we are ready to help you get the job done. Learn more about our company and get in touch with us for more information today.

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Rising Interest Rates A Slowing Economy And The Construction Industry

Rising Interest Rates, a Slowing Economy and the Construction Industry

There’s little doubt that the economy is slowing down. Whether we’re heading into an actual recession remains to be seen, but it’s certain that interest rates are on the rise, spending is down and business is slower than at this time last year. For the construction and contracting industry, this could lead to tougher times ahead.

As small- and medium-sized construction companies struggle to compete with bigger ones, a slowing economy is certainly a concern. It doesn’t mean the end, however. It just means that you need to take the right steps to ensure your company remains solvent and still experiences growth in tough times. Let’s take a look at how rising interest rates and a slowing economy will affect the construction industry this coming year and what you can do to stay at the top of your game.

Rising Interest Rates and the Construction Industry

As far back as 2015, analysts predicted that rising interest rates were going to have a negative impact on the construction industry. Everyone managed to hold on through 2018, as the economy continued to boom and rates went up relatively slowly. The most recent interest rate hike in December of 2018, however, saw another quarter point increase.

As rates continue to climb, spending will continue to slow. For the mortgage industry, it’s not expected to have a huge impact because inflation is not keeping pace with the rake hikes, but combined with a cooling economy, it means that less development and, consequently, less construction will go on.

Even as mortgage rates remain relatively stable, fewer people are investing in new homes, which means the residential construction sector is suffering.

Why the Housing Market Is Slowing

Despite the latest rate hike having little effect on the mortgage industry, mortgage rates have gone up quite a bit since 2017. Property values have continued to go up, outstripping average incomes and rental costs for the past 7 years. Finally, the new tax law changes have harmed the tax benefits that homeowners get for owning property, as opposed to renting.

These three factors together have contributed to a create slowing economy and a slump in the housing market. While Goldman-Sachs doesn’t consider this slowdown a crisis, it’s certainly an issue for the construction industry, which is seeing a reduction in the demand for development, especially in terms of affordable housing, which is the bread and butter of many construction companies.

While only 33% of housing inventory represents high-priced homes, more than half of those on the market are from this top tier. That’s driving costs up across the board, which again leads to fewer people being willing or able to buy. The early government shutdown has already had a major impact on the economy, with investors and home buyers alike stepping back to wait and see what happens, even as average people see paychecks deferred and need to tighten their belts.

Will the Market Crash?

The big problem is that predictors of doom and gloom have seen many Americans begin to worry that the market is going to crash. More people, as a result, think that now is the time to sell, not to buy. With the median family home prices across the country at 32% higher than current inflation, it’s starting to look similar to the last housing bubble.

Still, whether we’re heading for a full-on crash or not depends on who you’re asking. The Housing Bellwether Barometer is looking for a crash, while Goldman-Sachs is predicting a soft landing and a slowdown but eventual recovery. Eventually, the economy and the housing market will catch up — this is always the way.

Construction Industry Growth Will Slow, but Continue

Certainly it’s a concern that housing prices are down, but while the construction industry will slow in the coming year, growth is predicted to continue. For those companies who are equipped to face the slowdown, weathering it out could be the best bet. We’ve seen increasing growth over the past few years, and it’s resulted in good times for the industry as a whole. This coming year, however, it’s predicted that the growth will plateau, and there will belittle to no change in the industry.

Another big factor in this slowdown are the new tariffs and the trade war with China under the Trump administration. Material costs are up due to the 25% tax on steel and 10% on aluminum, taxes and costs which have been passed on to construction companies and consumers. It’s predicted that there will be an increase of roughly 5.6% this year in the overall construction industry, which is about the same as what we saw in 2018, while housing will slow to 5.9% from 6.7% last year.

Misleading Numbers

Some look at these predictions with skepticism. After all, we are currently in the longest consecutive bull marketoverall in the history of the nation. Growth is likely to continue but at a slower rate. What is misleading about these numbers is that continued growth does not mean that the growth will continue at the same rate across all sectors of the economy. Spending is up — people are going out to eat, buying luxuries and seeing increased incomes, but they don’t have the confidence to make the big purchases.

Because of this, we’re looking at some delayed investments, which are a bad sign for the development sector, where construction lies. Still, employment remains strong in the construction industry, coming close to its 2007 peak. It’s hard to see any red flags in employment figures. The market, however, is volatile at best.

When looking at the construction industry, it’s important to track both the Input and Output Build Cost Index. The input index looks at the effect that material, labor and equipment costs have on construction, while the output index looks at the supply, demand and bidding competition dynamics. How far apart the two are helps to gauge market conditions.

In a good market, the two indices have a wide spread because demand outstrips supply, meaning contractors can charge a premium for their services. Currently, the index is much closer together, as contractors are forced to compete for a shrinking job pool. Labor quality can also suffer as productivity goes down. In a recession, the output index falls far below input, while construction companies suffer losses just to get work.

Can the Rate Hike Be Good in the Long Run?

Some think that rate hikes may actually be good for the construction industry. In the end, the lending, bonds and monetary flexibility markets could see positive results, especially since the Fed has actually signaled future hikes. This will allow the industry to adjust in advance. While rate hikes normally drive down the stock market in the short term and raise borrowing costs and the cost of doing business, they don’t tell the whole story.

When the Fed is willing to increase rates, that means the economy is doing well and that there’s not an imminent recession. It also gives lenders more incentive actually to loan money. This could be good, because after the last couple of years, increased lending is needed across the industry. As fewer people are willing to borrow, however, lenders will likely loosen their standards. People will look to secure mortgages before rates climb too high.

What It Means for the Bonding Industry

Bonding, of course, is essential to the construction and contracting industry, and interest rates have a direct effect on the bonding industry. As interest rates rise (and there are more hikes expected in Q1 next year), the amount of private construction is likely to decrease, which can lower revenue from premiums and consequently disrupt cash flows as fewer companies seek bonding for jobs.

In addition, higher costs related to completing jobs can result in more bond claims, especially from smaller companies. Fewer bonds and more claims are not great news for the bonding industry. In fact, in a recent “State of the Surety Industry” report by the National Association of Surety Bond Producers (NASBP), 87% of respondents indicated that managing contractual risks is among their top concerns. 

Still, bonding is essential to the construction and contracting industry, which means that even in a slowing industry, contractors will still need to secure bonds to bid on many jobs. That’s the good news for surety companies.

Putting It All Together

When we put everything together, we’re looking at both positive and negative effects from the ongoing rising interest rates. First, financing rates will increase. This means that lenders will be more willing and eager to lend money and will loosen lending restrictions. It also means, however, that people will be less eager to borrow. In this case, since the cost of borrowing will only go up marginally, it could be a good or a bad sign.

Materials costs are going up, especially with the new tariffs in place. Fortunately, the rate of inflation hasn’t increased alongside the interest rate hikes, which will help to mitigate that rise in costs to some extent. Still, material costs could increase more than most companies have budgeted for this year. Fortunately, the future forecasts should allow that to correct itself in the coming months and years.

Finally, the housing market is down. This is just a fact. While people are still buying, they’re not buying as fast as sellers want to sell. Supply is outstripping demand, and home values are increasing. This means less development, which means, in turn, fewer jobs in the residential construction sector. In the end, this is probably the biggest factor that will impact the construction industry this year.

How Residential Construction Will Cope

As the construction industry struggles, residential construction companies who rely on development will naturally and increasingly turn to commercial bids to make ends meat. This can be a tricky prospect, as there are major differences between the two kinds of construction. Making the shift to commercial bids from residential ones can present quite a culture shock for small- to medium-sized businesses.

You will have to deal with issues like greater detail orientation, back-and-forth dealings with engineers and architects and much higher dollar-value jobs, which means much higher dollar-value oversight. This is especially true when dealing with government jobs, which are likely to present the highest potential for earnings and growth.

It’s not surprising for a residential building company to try to take this leap — many do, even in the best of times. Growth is essential to success, and that means bidding on ever larger jobs. Eventually, this will mean at least diversifying into commercial, if not switching over entirely. To make the switch, there are a number of things to keep in mind.

First, take it small and slow. Don’t immediately try to jump into the biggest jobs available. You’re going to need to build your skill set and learn a number of new elements to the job. Second, do your homework and research. Get to know the new skills you’ll need, the laws surrounding commercial construction and the issues that are unique to this sector.

The Right Staff Matters

Next, hire the right staff. You need legal and financial advisors who are intimately familiar with the issues associated with this kind of construction. You’ll also want laborers, project managers and other experienced staff who have handled commercial jobs before. Building a high-rise is an entirely different experience than building a house, as is building a retail storefront or office building. You need people in your corner who know how to handle the job.

Dealing with Miller Act Requirements

One of the biggest differences when you turn to government jobs in a slowing economy is the requirements you’ll need to uphold under the Miller Act, or your state’s Little Miller Act, for state level bids. These acts require you to secure surety bonds to cover any job you take on. These bonds are of two varieties: payment bonds to ensure that you pay your subcontractors and material providers and performance bonds to cover your ability actually to complete the job you agree to take on.

Every state has a different requirement for its Little Miller Act. Commonly, however, bonds have to be taken out for every job with a minimum value, and usually (though not always) must be at least equal to the value of the job in question. This means that if you take out a $500,000 job, you’ll likely need a payment bond and a performance bond, each equal to $500,000 in value. This is a generalization, however, as each state has its own requirements, and you’ll want to research the regulations in your state.

Getting Bonded

Being bonded as a construction company offers many benefits. It improves your reputation, giving your clients the peace of mind knowing that you can complete the jobs you agree to take. This in turn allows you to increase your client base and bid on ever higher jobs. In addition, the more jobs you complete, the more you’ll be able to get bonded, which gives you the freedom to grow your company and bid on much larger jobs in the future.

Of course, when you’re looking to bid on government jobs, the Miller (or Little Miller) Act actually requires you to carry bonds. Getting the right bonds is a matter of working with the right bonding agency. At NSSI, we’ve got a quarter century behind us as experts in the surety bonding industry, and we offer every kind of bond, including janitorial, payment and performance, bid bonds, transportation bonds and beyond.

For small companies looking to compete at larger levels, like residential construction businesses looking to move into commercial in a slowing economy with rising interest rates, the SBA bond guarantee program can be a great way to get started. This program can allow you to bid on government projects of up to $6.5 million in value, and the process to apply is super easy. In fact, all of our application packages are fast and easy, and we also feature lightning-fast turnaround time on approvals.

At NSSI, we believe our job is to help our clients find the success they deserve. We’re looking forward to being your partner in this process. Get in touch with us for more information and to get started today.

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How To Grow Bonding Limits

If you’re in the construction or contracting business, you know that bonding is essential to your operations and your success as a company. Bonding is what gives your clients, your material suppliers and vendors and your subcontractors confidence and peace of mind in your ability to pay for goods and complete the services you’ve contracted to perform.

Of course, as you grow your company, you’ll want to grow your bond capacity, or limits, so you can get larger bonds and thus bid on bigger contracts. Many small- to medium-sized companies struggle with how to do this. Let’s look at the steps you can take to increase your bonding limits and look at how an experienced surety agency is absolutely essential to your business success.

Understanding Bonding Limits

A bonding limit is not much different than a line of credit. It’s the maximum dollar amount for which you’re approved by a surety agency. It usually sets the limit on how much you can bid for any project. It’s also limited based on the total amount of bonds you’re already carrying on other outstanding projects. Growing these limits means convincing your bonding agency that you’re a good bet moving forward.

Building Trust

The first step in growing your bonding limits is to build trust. That means gradually working your way up by getting bonded on multiple projects and not needing to use those bonds. A bond essentially serves as a guarantee of a loan. Should you fail to live up to your obligations, the bonding company will step in to compensate the people who lose out, but you’re then on the hook to pay it back.

Because of this, bonding is essential, but it’s also a service you want to have and not use. The more you get bonded without needing to call in the bond, the better off you are. You should also start by showing that you’re organized and an effective communicator. Respond with all requested documents in a timely fashion. Don’t request bonds on very tight deadlines – this shows a lack of planning.

Build Successful Projects

Another aspect of bond limits is your ability to repay the bond if you do need to call it in. That means you should build a legacy of successful projects so that your company financials show an increased ability to repay your debts. In addition, you’ll need tangible liquid assets. Company equity counts, but not nearly as much as you might think, because it’s hard to cash it in. Surety companies are more concerned with assets you can liquidate and from which you can extract value when the time comes.

Grow Your Portfolio

Along the same lines, grow your portfolio. Make sure that it doesn’t show backward movement or stagnancy. It needs to show a steadily increasing value. This will not only show that your company value is growing, but that you are growing your expertise and ability to handle a variety of different kinds of contract.

Work With an Experienced Surety Agency

Finally, make sure you work with an experienced surety agency like NSSI. The more well-known, respected and experienced your agency is, the better off you’ll be. You’ll develop a relationship that will last for years, and you’ll see your bonding limits steadily grow. If you need help getting started with your medium-sized contractor’s standard surety program, contact NSSI for help and more information today.

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Indiana Little Miller Act

For just about every kind of contract work in the United States, you need surety bonds. These bonds help protect everyone involved and are often legally required, but the bonding process can be a bit hard to understand if you’ve never dealt with it before. One of the most important aspects you need to know is your local Little Miller Act.

The federal Miller Act describes general surety bond laws that are valid throughout the country, but each state has its own version called the Little Miller Act. If you’re trying to conduct business in Indiana, you’re going to need to know what’s involved. Learn about the Indiana Little Miller Act, and discover how it affects how you get your surety bonds.

Miller Act History

The first Miller Act was put into place all the way back in 1894, when it was called the Heard Act. Bureaucratic limitations of the time made it effectively useless, however, so another act was pushed through in 1935. That became the Miller Act we know today, and it plays a very important role when it comes to surety bonds.

At its core, the Miller Act governs the need for performance bonds and payment bonds for contract projects. Performance bonds are important in that they ensure all parties involved that the work will be completed on time and with the promised quality. Payment bonds ensure that everyone gets paid for the work, including subcontractors and any material suppliers.

Benefits of the Miller Act

The purpose of surety bonds is to protect the clients of contractors, so contractors often view them as more of a burden than anything else. The Miller Act makes them legally required, creating no escape from that burden, but surety bonds offer more benefits to contractors themselves than you might think.

A lot of jobs will require the use of subcontractors. Without surety bonds in place to guarantee their payment, subcontractors are going to be very reluctant to come on board. In addition, surety bonds mean subcontractors won’t have to worry about the contractor’s company folding and putting the financial weight of the project on their shoulders.

Indiana Little Miller Act

The Indiana Little Miller Act describes specific guidelines for bonds and what they cover in construction and other contracted projects. The bond amount must equal the total contract price if the project itself is required to be bonded. Surety bonds cover virtually every facet of the project, with a few exceptions. They do not cover suppliers to subcontractors or anyone who is not officially contracted with a contractor or subcontractor.

Further details deviate based on the specific statute the project corresponds to. Indiana has four distinct statutes in total to address this. The first is for projects owned by the State of Indiana. Prisons would fall into this category. The second is for projects partially supported by the state, like some universities. The third is for infrastructure like highways and bridges, and the last is for local government projects like parks and schools.

Surety Bonds From NSSI

The Indiana Little Miller Act provides guidelines for all your surety bond needs. Not only are they legally required in many cases, but you need surety bonds to protect your reputation as a contractor. Most people aren’t going to work with you otherwise. To get the surety bonds you need, look no further than the experts at NSSI. Contact ustoday to learn more about everything we can offer you.

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5 Challenges for Small Business Contractors

Small contracting businesses are really not much different than any other small business. They suffer a great deal of challenges that can lead to going out of business quickly if not properly addressed. In fact, more businesses don’t make it than those that do. It’s important to get over that critical first year hump, and doing that means understanding the challenges you face.

From efficiency and cost-cutting to labor issues and the need for the right surety bonding services, it’s not easy facing up to these challenges. Learn about five challenges small business contractors face, including getting contractor bonds, and how you can overcome these hurdles to find success.

Highly Competitive Field

Contracting businesses face more competition than just about any other kind of job. It’s a very fierce industry and this can haunt you for all the years you’re in business. You need to know how to put yourself ahead of your competitors, win bids, and keep your business healthy while still offering outstanding and trustworthy service and results.

Figure out what it is that sets you apart from the others, and focus on that in everything you do. Think hard about it and don’t go with the easy, “we provide better work.” What specifically makes you different? That’s your key.

Finding Skilled Workers

Contracting and construction requires both skilled and unskilled labor. You can find unskilled workers just about anywhere, but the right skilled (often union) labor such as qualified and licensed tradesman can be a problem. In fact, almost 75% of contractors face a shortage of skilled labor, and this issue stretches back all the way to the eighties.

Unfortunately, this isn’t an easy problem to solve. You’ll need to leverage all your contacts and networks, and keep your ear to the ground to take advantage of any opportunities that arise.

Reliable Payment Schedules

Delays in payments haunt every contractor. Your clients will find any reason to avoid paying out on time, largely because the costs are so high. A lack of understanding about how this hurts your company, tons of bureaucratic gears spinning, or just a lack of caring about the effects on you are all reasons this happen. You need to write into your contracts the consequences for late payments, and develop relationships with clients you can trust to pay on time.

Limited Capital

Just like every business, contracting companies face problems of limited capital, especially in their early days. When you encounter stumbling blocks, hurdles and challenges in operations you might not have the extra money to make up the time. You don’t have financial freedom to counteract these issues, to expand or to bring on more full-time staff. That’s where bonding becomes so important.

Contractor Bonds

Bonding is the means by which you reassure your clients that by hook or by crook, you’ll find a way to finish the job you promised. It also reassures your subcontractors that they’ll be paid, as well as your vendors and material suppliers.

Getting bonded can be a real challenge if you don’t work with the right service. For many years, NSSI has provided contractor bonds for payment, performance and all other areas to many small businesses across the U.S. Our SBA Surety Program allows you to get easily bonded for government contracts to compete with the best and grow your company. To learn more about the SBA program, get in touch with us today!

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Small Business Contractors Winning Government Bids

Landing a government contract isn’t just a good idea to grow your small construction firm; it’s absolutely essential to your ongoing success. Government jobs pay really well, and are very high profile; they allow you to build your reputation as a trustworthy contractor as well as to get ongoing work in the future.

The problem is that the construction and contracting industry is a very crowded field, and it can be tough for a startup to compete for that coveted first job. What can you do to improve your chances? Learn the best practices to win a government construction contract, and why general contractor bonds are such a vital part of getting your bid accepted.

Be Organized

The first step in obtaining your government contract is to be organized. Get registered in the Central Contractor Registration (CCR) database. You’ll provide information about your business and services, and upgrade the information at least once a year or as needed (whichever is more frequent). Completing the entire website will save you a great deal of time in the bidding process, because it will allow you to have most of your documents on file already.

Get to Know the Small Business Administration

The Small Business Administration has tons of information and resources about bidding on government construction contracts. It’s the single most useful resource for finding and bidding on government contracts there is. It allows you to get educated on all of the rules, laws, statutes and regulations. It also ensures you’ll be competing against other small businesses, to even the playing field.

In fact, the SBA has an Office of Government Contracting, which offers full training so that you can get better educated on the process. It’s an outstanding resource which can also let you know when there are “full and open competition” notices for available jobs.

Know How to Perform Targeted Geo Searches

Targeted geo searches are key to finding open contracts. Don’t just sit around and wait for them to come to you; learn how to search your geographic location. Scout local government facilities and military bases in your area. Make appointments to meet those in charge of procurement face-to-face .

Know Where to Get General Contractor Bonds

Finally, know where you can go to get general contractor bonds. If you don’t fully understand the bonding process, you’ll want to educate yourself on this as well. Bonding is potentially the most important aspect of winning the bidding war for a contract. Most government jobs require a minimum level of bonding, and will require you to carry performance and payment bonds at minimum, under your state’s Little Miller Act, or the Federal Miller Act.

The right surety bonding service will not only be able to help you get the bonds you need with fast turnaround and no hassle, they’ll be happy to work with you regarding exactly the bonds you need, and to provide any assistance you need in the process.

For years, National Surety Services, Inc., has provided bonding services to small contracting companies all over the nation. We’re experts at what we do, and we specialize in helping you. Get in touch with us for more information today.

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How To Grow Your Small Contracting Business

The goal of every small business is to be successful, grow, and last for decades into the future. Unfortunately, the vast majority of startups never get that far and don’t make it beyond their first year of work. If you’re starting up a contracting business, you’re facing a great deal of competition, a very difficult field, and one that is fraught with peril and pitfalls.

That being said, it can also be among the most rewarding careers there are, and most of these pitfalls can be avoided with the right knowledge. With that in mind, here are some vital tips and tricks for how to grow your small contracting business, including information on where to get the best, fastest and most trusted surety services.

Educate Yourself on Best Practices

Just because you have an idea of how to do something, and that idea works for you, that doesn’t mean it’s the best practice. Running a business is a constant process of learning and adaptation; you should constantly be reviewing the latest industry journals and publications and applying best practices to improve your own operations. This goes for everything from bookkeeping to hiring and safety procedures.

Join Industry Associations

Industry professional associations are a great way to network, to keep up with the latest developments and trends, and to take advantage of resources and developments you might otherwise not even know exist. For contractors, such associations include Associated Builders and Contractors, Associated General Contractors, the Government Contractors Association and others.

Do your research and find the best associations that match what you do, and what you want to do. Sign up, and take advantage of the resources they have to offer. This can be a big step in improving your customer base. Register your company with the Better Business Bureau.

Marketing

Marketing goes hand in hand with industry associations, which can provide access to recommendations and an increased customer base. It’s vital to get your name out there. Get a Google business profile and keep it up to date. Create a website with useful and valuable content that will bring people back time and again.

Get social media accounts on LinkedIn, Pinterest and other services. Register with your local Chamber of Commerce. Build an email list of existing clients. Attend trade shows to get new clients. The more you can do to get your name out, the better off you’ll be.

Get Surety Services and Bonding

There’s no better way to show that you have the credentials to complete a job than to get the best surety bonding services. Businesses that are bonded are showing that they will finish the job they’re contracted to do. It shows you can be trusted, not just by your clients, but by your subcontractors and suppliers as well.

If you want to bid on government jobs, which is essential to your growth as a company, you’ll need specialized surety services to obtain the bonds you need. For many years, NSSI has been focused on helping small businesses get the bonding they need with our small contractors specialty program. Get in touch with us for more information today.

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Illinois Little Miller Act

Little Miller Acts are active in just about everywhere you go in this nation. They’re in place to provide essential protections to subcontractors and vendors on construction projects. They are named after the Federal Miller Act which began life as the Heard Act of 1894, and gradually evolved into its current form.

What exactly is the Miller Act, however, and what does a Little Miller Act mean, and do, for the people it protects? Let’s explore the Illinois Little Miller Act, the protections it provides, and what it means for you as a contracting business, and the bonds the law requires you to hold.

The Miller Act

The Heard Act of 1894 was the first law that required contractors to carry a performance and payment bond to afford a degree of protection to those subcontractors and material providers that worked on a job. Unfortunately, this act was severely limited with red tape and procedural issues so it was difficult to enforce.

In 1935, the Heard Act was revised into and superseded by the Miller Act, which directly addresses two important concerns regarding government construction projects. These require contractors to carry performance bonds for the purpose of compensating those who would suffer if the contractor doesn’t complete their responsibilities. Secondly, contractors must carry payment bonds to ensure that material providers and subcontractors get paid if the job isn’t completed.

Little Miller Acts

The Federal Miller Act, unfortunately, only covers federal contracting jobs. This is where Little Miller Acts come into play. State after state has been following the federal government’s suit, and enacting acts that cover jobs at the state and regional levels. These acts require specific bonding requirements be carried by contractors bidding and working on state construction projects. Each state has its own specific requirements.

Illinois Little Miller Act

The Illinois Little Miller Act requires any job whose contract is valued at more than $50,000 and is a state project, or is valued at $5,000 and is a state subdivision project, to carry both a performance bond to ensure completion of the contractor, and a payment bond to ensure payment of subcontractors and materials vendors, should the contractor not be able to complete their agreed-upon responsibilities.

These bonds are enforced by filing a suit 120 days after the last work or the final settlement, and are limited by the filing of a suit within 6 months of the project’s final acceptance. In order to pursue a lien against these bonds, the obligee must file a notice to the government within 180 days of the final work, plus provide a 10-day notice to the contractor thereafter.

Getting the Right Bonds

If you’re bidding on a government project in Illinois and you need to get in compliance with the Illinois Little Miller Act, National Surety Services, Inc, is here to help. We’ve got decades of experience taking the pain out of the bonding process and getting contractors the surety they need to take their business to the next level. If you’d like more information on getting the right performance bonds and payment bonds for your business in Illinois, get in touch with us today.

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Understanding Surety Bonds

If you run a contracting business, you’re going to come up against the requirement for surety bonding at some point in time. Whether it’s the U.S. Miller Act, any of the state Little Miller Acts, or local and regional requirements, being bonded is quite simply a necessity to keep your business operating and compete with other contractors.

Even so, many contractors are confused as to exactly what a surety bond is, how it differs from an insurance policy, what it protects and how it is used. See surety bonds explained, what they mean for you and your contracting business, and learn where you can go to get the best, fastest surety bond service.

Surety Bonds Explained

Surety bonds are a form of protection that a principal (contractor) acquires which guarantees that if they don’t meet one of the conditions of their contract, payment will be made. Anyone who is affected by such a failure will, then, be compensated for their loss. These people, the obligees, will be able to place a lien against the appropriate bond.

Unlike an insurance policy, a bond protects the people with whom you contract as opposed to protecting you, and unlike insurance a bond is effectively a loan. When you use your bond, you’re on the hook to pay it back.

Performance Bonds

The most common and universal type of bond is a performance bond. These bonds guarantee that you will complete the responsibilities of your contract. They cover your projected completion dates, your quality standards, design details, and all other aspects of your promised deliverables. If you don’t deliver on time and at high quality, your bond will compensate the obligee.

Payment Bonds

Most contractors work with subcontractors on a job, from workers you bring in to the vendors who supply your materials and equipment. When you fail to pay these people, they can place a lien against your payment bonds to make sure they get compensation.

Bid Bonds

Bid bonds, similar to performance bonds, assure your obligee that you will follow through with an agreed-upon condition. In this case it’s the bid proposal you offer. It also guarantees that if you can’t that you’ll follow through with an alternative that is mutually agreed upon. These bonds stop people from making frivolous bids and false starts in the process.

Subdivision and Site Improvement Bonds

There are times when a contract requires extra conditions that have to be met, which are beyond the normal project scope. These conditions may not be covered under the performance bond and have to be covered via a secondary bond. This is a subdivision bond or site improvement bond. These bonds cover things like code-compliance issues, gutters, curbs, sewers, signage, green spaces, drainage fixtures, and the like.

Working with the Right Surety Bonding Agency

If you are in need of having surety bonds explained in more detail, the right surety bonding agency is a must. National Surety Services, Inc., has been in the business of surety bonding for decades. We’re here to take the stress and confusion out of the process and get you the bonds you need. For more information, give us a call today!

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Why You Want A Surety Expert

Surety bonding is a fact of life in the construction and contracting industry. It’s the means by which construction companies not only protect themselves and their clients, but prove their own reputations. A company that carries the right bonding is sure to complete the job responsibilities to which they agreed, and if they can’t, their clients will receive compensation for the failure.

Too many contractors, however, confuse surety bonding with insurance and go to their insurance company to get bonded. This can be a serious mistake that can leave you without the essential protections you need. Learn why it’s important to work with experts in surety services instead of seeking bonding through an insurance company, and where you can go for help.

Surety Bonds vs. Insurance Policies

The first thing you need to understand, which most insurance agents won’t tell you, is that a surety bond is absolutely not the same thing as an insurance policy. Both provide a degree of protection on a job, but that’s where the similarities stop.

An insurance policy is in place to protect you and your company. It’s money that kicks in when something unforeseen or even tragic happens on the job site. It covers theft, damage to your equipment, damage that you cause to someone else’s property, medical bills for injuries and accidents, and other issues.

A surety bond, on the other hand, protects your service providers and clients. It’s money that will pay for your failure to complete your obligations. Depending on the type of bond you secure, it pays your subcontractors and materials providers. It pays your obligee in the event you can’t deliver. It’s also a loan that you have to pay back, unlike an insurance policy.

Why a Surety Expert Matters

For these reasons, among others, you want to work with a surety expert instead of an insurance agent. Surety bonding experts understand the unique nature of their field and the services they provide. They understand how bonds work, how they interact with your insurance policy and the services you provide, and they can not only get you bonded, but can educate you on the disconnect between bonds and insurance.

Getting the Service You Need

Another reason to work with a bonding expert is that too many insurance agents try to package and bundle everything. This all too often results in you paying way too much for a lot of representation you just don’t need. Navigating these packages can be very overwhelming and lead to you being more confused than ever.

Work with the Right Bonding Agent

The right surety expert will avoid the confusion, cut through the complexities, and help you to get exactly the bonds you need to protect your clients and keep you legal. The right bonding can enhance your reputation, especially if you don’t use the bonds. Work with a surety bonding agent and get the protection you need, when you need it, to bid on the jobs you want.

At National Surety Services, Inc., we’re here to make the process of surety bonding easy and fast. Give us a call for more information today!

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Why Your Insurance Agent Should Be Working With A Surety Expert

One of the biggest mistakes many contractors make is thinking that surety bonds and insurance coverage are the same thing. In truth, while these two forms of coverage are similar, they are separate and distinct, and fulfill different purposes in your business operations. It’s vital to have both, but unfortunately, all too often an insurance company will convince you that insurance is all you need.

This isn’t necessarily malicious on the part of the insurance agent; many just don’t realize the difference between the two, or the importance of having both. Discover the reasons why your insurance agent should be working with a surety expert, and understand the difference between surety vs. insurance.

Surety vs. Insurance

The key differences between surety vs. insurance reside in what they cover, who they protect, and both when and how they pay out. It’s a mistake thinking that surety works exactly like your insurance policy, or vice versa and understanding the difference can be key to making sure you have the coverage you need, when you need it.

Insurance Protects You

An insurance policy protects you in case of unforeseen accidents. If your business suffers damage, whether it’s damage to a person, equipment or property, insurance will pay out to cover that damage. If someone on your payroll damages someone else, your insurance policy will cover that damage. It’s a protection against liability and to cover your losses.

You pay a premium every month to keep this coverage in place, and it’s ongoing. Insurance will be there to protect your business whenever you need it.

Surety Protects Your Client

A surety bond, on the other hand, is taken out for each individual job upon which you bid. You generally pay the premium for the surety policy up front, and it covers the entire job. However, it doesn’t protect you or your losses. It protects your client and depending on the type of bond, sometimes your workers.

A surety bond is in place to compensate anyone who would be harmed if you fail to live up to your contract. If you can’t finish the job for whatever reason, the various bonds you carry will see to it that your client is reimbursed for their losses, that your subcontractors are paid, and other obligations are met.

There are a number of different types of bonds you might carry on a job. Performance bonds, for example, promise that you’ll finish the job. Payment bonds promise that you’ll be able to pay your subcontractors and suppliers. Bid bonds are a promise that you’ll comply with your bid contract. You may need multiple bonds for your job.

Finally, a bond is a loan. If you need to use your bond coverage, you’ll be on the hook to pay it back. It’s extra incentive to be sure you live up to your responsibilities.

Getting the Right Coverage

When your insurance company works out your policy, they should also work with a surety bond expert to ensure that you’re properly protected from all ends of the spectrum. If you’re in need of the right bonding, and you need more information, NSSI can help. Get in touch with us to get started today.

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The Three Essential Types of Contractor Surety Bonds

Many thanks to the Miller Act, surety bonds are absolutely nothing except a demand when it involves many construction tasks. Surety bonds are essentially guarantees to the proprietor of the job that the contractor will finish the job appropriately and also make certain all parties entailed are effectively made up for their work.

While surety bonds might seem as if they do not actually benefit contractors, they are needed for maintaining a track record and even getting most jobs to begin with. If you're wanting to land the good tasks, you'll require to make use of contractor surety bonds. Learn the three crucial kinds, and also uncover what each is for.

Bid Bonds

Prior to you can land any kind of agreement, you normally require a bid bond. As the name may suggest, these bonds are essential for the bidding phase as well as ensure you're excellent for the amount that you bid. Simply put, a bid bond is a guarantee that you, as the contractor, will certainly have the ability to tip right into the job for the price that you bid.

Bid bonds are special among surety bonds, nonetheless, as they generally wind up being cost-free. The bond itself still has actually to be spent for, certainly, but in the majority of situations, you can put it in the direction of the expense of the entire job. That suggests your expenses for the bid bond will certainly be covered upon conclusion of the project.

Performance Bonds

Performance bonds are the main type of bonds lawfully needed by the Miller Act if the task deserves greater than $100,000. Considering the typical expense of modern jobs, it's risk-free to assume you'll need a performance bond by default. These are the bonds that guarantee any kind of task proprietors that you will give work of acceptable quality which you'll finish the job promptly.

It's vital to remember that performance bonds are subject to the details in the contract, so the level of top quality as well as designated timespan can differ a fair bit. Ought to you ever before default on an agreement, the performance bond forces the surety company to locate a replacement contractor, so the project proprietor is always protected.

Payment Bonds

In a great deal of instances, payment bonds are issued right along with performance bonds. In some cases, they are even underwritten as a solitary bond, so don't be shocked if your surety carrier urges you in that direction. The point of payment bonds is to secure everybody else associated with the job apart from the contractor and also project proprietor.

Most of the times, the contractor will have to utilize the services of providers as well as subcontractors throughout the duration of the job. A payment bond makes sure that those providers and subcontractors are covered and also will certainly receive their suitable repayments promptly in conformity to their contracts.

Contractor Surety Bonds From NSSI

If you're looking for the three key sorts of contractor surety bonds or essentially any various other sort of bond, NSSI enjoys to assist. With years of experience and a relentless devotion to client service, we act as a companion for your business, purchased your success. Call us today to read more concerning what we can do for your next task.

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Idaho Little Miller Act

The law that would become the Federal Miller Act was originally enacted in 1894 and was at the time called the Heard Act. It was established to require a performance and payment bond to provide a degree of protection to subcontractors and materials providers. This act, however, was originally held back by a wealth of limitations at the procedural and substantive levels, which led to it being amended and superseded in 1935. At this time it was called the Miller Act.

Since then, individual states have stepped forward to enact their own acts requiring these bonds at levels other than Federal. Such statutes are known as Little Miller Acts, and they are specific to each state. Learn about the Idaho Little Miller Act, what it means for your business, how it works, and why these acts are so important to contracting companies.

Purpose of a Miller Act

The Federal Miller Act and associated Little Miller Acts exist to address primary concerns in the performance of construction projects. These concerns are the completion of jobs bid upon by contractors, and the payment of material suppliers and subcontractors. The means by which these assurances are granted are performance bonds and payment bonds, respectively.

The Miller Act requires that all contractors bidding on a government job carry performance and payment bonds in significant enough sizes to cover their obligations. Little Miller Acts require the same coverage, but at the state level. Thus, when bidding on a state government job, a contractor must carry these bonds at levels specified by the state Act.

Idaho Little Miller Act Statute

The Idaho Little Miller Act allows those who provide materials or subcontract on a project in the state to file a lien against the project to ensure that your proper payment is rendered. Such liens, since they are technically not against actual property but are against bonds, are known as bond claims or little miller act claims.

The Act requires that performance bonds must be carried in the amount of at least 85% of the total contract amount based on successful completion of the agreement. This means if a bid accepted for $100,000,000, you would need to carry a performance bond of at least $850,000.

It also requires that a payment bond be carried, also at least 85% of the value of the total contract, for the purpose of ensuring payment to those supplying materials, labors, or equipment to the contractor during the course of the job.

Other Requirements and Getting Bonded

There are a range of other requirements for state level jobs under Idaho’s statute. These include the ability to withhold up to 5% of the payment required as a retainer. Bonds have to be executed by surety companies that are licensed and authorized to work in the state.

NSSI is licensed and certified to issue bonds in Idaho, and we can help you to ensure that you’re properly covered at all levels. If you need bonding to comply with the Idaho Little Miller Act, we’re ready to help. Get in touch with us to get started today.

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Keeping Your Crew Safe This Holiday Season

Summer is upon us now, and with the Fourth of July upcoming, followed by Labor Day at the end of summer, it’s a high travel season. This can also make construction sites even more dangerous than usual, especially when combined with high heat and the dangers that come with it.

Of course, no contractor wants to put their people in danger. It’s important to carefully plan your work zones for the travel season, though it’s also important to understand that you can’t account for every possibility. Discover some important tips to keep your crew safe this summer holiday season, and be certain you have the right performance bid bond in place.

Things to Consider When Planning Your Site

The first thing you need to do on any job site is to develop a plan of action. Put together a timeline of activities, understanding that on days like Independence Day and Labor Day you’ll likely be shutting down. You want to be sure that things are properly secured and shut down so that the public is safe.

Prepare to address all municipal regulations, and make sure there’s plenty of time to secure the site. Plan to conduct walkthroughs to look for safety hazards. Remember that the public are not contractors and things that are obvious to you may not be obvious to them. Finally, put a protocol in place to deal with any emergencies that do happen.

Executing Your Plan

Now it’s time to execute your plan. Keep your crew on high alert the entire time they’re on site. Distracted and drunk drivers are an epidemic this time of year so make sure you’re giving plenty of room to avoid traffic troubles. Know how traffic patterns work and flow, and make sure you’ve got the right signals and signs to clearly alert all passers-by on foot or on vehicles of the danger.

Keep your equipment secured and out of sight. Keep your equipment away from travel zones. Don’t leave tools, debris and equipment unattended. If there are fall hazards, make sure they are thoroughly secured to keep intruders and unauthorized people clear. Make sure that the site is well lit at night so all travelers can see the signage and conditions.

Communication is Key

Finally, make sure you have a constant, clear and open line of communication with your crew, your project managers, and your site supervisors. Make sure they are aware of the plan, the safety procedures, and the potential dangers for which they need to account. They first line of defense against accidents is safety.

Performance Bid Bond Services

Having the right bonding in place is also essential to being sure you can cover your obligations in case of an emergency. Secure the proper performance bid bond for every job and if the unthinkable happens, you’ll at least have the means to cover your workers and the project.

When you’re ready to undertake your next job, look to the performance bid bond services from National Surety Services, Inc. Learn more about us, and give us a call for more information today!

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Why Working With Hubzone Certified Contractors Benefits Your Company

When you run a contracting or construction business, working with subcontractors is a fact of life. Very few companies have the ability to function with just their current staff, especially when big jobs come up. Those that attempt to keep such large numbers of staff on board generally face layoffs during lean times.

As such, it’s best to work with subcontractors on an as-needed basis. When it comes to competing for federal jobs, it’s often a good idea to partner with companies located in historically underutilized business regions. This can give you a major competitive edge. Learn why working with HUBZone certified contractors is the best bet for your company, and why it’s equally important to have the right surety bond in place.

What is a HUBZone Certified Contractor?

HUBZone certified contractors are those businesses who operate in areas that are historically underutilized. The regions can be rural or urban, but the HUBZone program is designed to stimulate the economy in these economically disadvantaged communities, and the Federal government spends 3% of all its procurement dollars on contracts in this program.

These firms tend to be small, and as such they seek to subcontract with larger firms called Primes. If you are trying to bid on government contracts, working with one of these firms can be a big advantage.

Become Eligible for HUBZone Dollars

Working with a HUBZone contractor makes you eligible to get extra funding for your jobs. The procurement dollars the government sets aside for these companies open up new business opportunities for Prime contractors like you, who work with them.

Preferential Positioning

The Federal government is actively seeking to give work to HUBZone companies. This means that by working with a certified company, you will receive preferential positioning on your bids. So long as your offer is a maximum of 10% higher than that of a non-HUBZone team, your bid will be considered as lower.

Meeting Goals

As the government actively seeks these companies to work with, they find that they’re still not meeting their goals. Because of this, they’re even more likely to accept your bid. In fact, as maps are being redrawn, many companies are losing their certifications. This means agencies are eager to find new teams.

How to Find a HubZone Partner

Partnering with a HUBZone contractor is easier than you might think. The U.S. Small Business Association provides an online tool that lets you run a search for a certified firm, based on your industry and your geographic location. Also check for certification listings on websites.

Be Sure You Have Surety Bond Coverage

No matter who you decide to work with, however, always be sure that you’re properly bonded. Working with a subcontractor is a risk at any time, and you need to be sure that if something interrupts your job, you have the ability to compensate the client, to pay your bills and to cover your obligations.

If you are in need of the right surety bond coverage, NSSI can help. Get in touch with us today to learn more about our surety bonding services and to get started with your application.

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Avoid These 4 Most Common Construction Site Violations

The construction industry is one of the most dangerous businesses there is. Tens of thousands of construction workers are injured or killed every year in accidents on site. Sadly, many of these accidents are the result of carelessness or ignoring safety regulations. They can be avoided with just a bit of care.

That’s why it’s so essential to keep your workers properly trained and stress the importance of safety regulations. Learn how to avoid these 4 most common construction site violations, and how the right surety bonding agency can help to cover your liability when the worst happens.

Construction Site Violations

Construction site violations of safety rules are far too common on job sites across the nation, and they have resulted in over 20,000 accidents reported to OSHA in the past few years alone. OSHA, in response, has raised the maximum penalty for these violations. It’s more important than ever to guard against these dangers on the job site.

Slip and Fall Accidents

Slip and fall accidents in 2014 accounted for almost 360 deaths out of almost 900 reported. Most of these are the result of safety violations. It’s important to use the proper safety equipment and scaffolding, secure your workers with harnesses, and do everything you can to reduce falling hazards on the job site.

Proper Training

Too many construction companies hire workers without putting them through proper safety training. This lack of training can be seen as a way to save money, but in truth, the accidents that result from improper training on equipment and procedures cost far more than a few days’ worth of information and courses.

Personal Protective Equipment

Personal protective equipment, or P.P.E., is essential to your workers’ safety. Hardhats, work gloves, eye and face protection and hazard suits are vital to keeping your workers safe on the job site. Make sure that you’re aware of the kind of work your job requires, and the proper equipment people need to stay safe in the face of that work.

Effective Communication

Job sites can be large and noisy places, and when an accident does happen, the right effective means of communication is essential to mitigate the damage that happens. The ability to call for help when the unthinkable happens can make the difference between an injury and a death. Make sure that you have effective and open channels of communication to protect your workers from the dangers they face.

The Right Surety Bonding Agency

When an accident happens, it can shut down your entire work site. This can leave you with losses in the millions of dollars if you can’t cover it. That’s why working with the right surety bonding agency is important. A surety bond will cover your losses in case you can’t complete a job, from paying workers to compensating your client.

If you’re in need of bonding for your next construction job, NSSI can help. Contact us today to find out how our fast and easy bonding process can get you up and running.

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Looking To Increase Your Bonding Capacity?

A contractor’s bonding capacity is an essential part of their business. It is the highest dollar amount that a contractor is approved for when it comes to bonding with a particular surety. Why is this amount so important? It specifies the biggest job that a contractor is able to bid on when a surety bond is required.

If you are looking to increase your bonding capacity, to grow your business and be able to win larger projects, you must show that you are a secure risk financially. Then you can take your bonding capacity to a higher level.

Develop Trust with Your Surety Partner

As with any business relationship, the first step for a contractor to establish a better bonding capacity and gradually increase it begins with trust. The main concern for a surety when it comes to supplying a contract bond is that the contractor will end up defaulting on the project, which results in a bond payout. Understanding this concern, you can begin to build trust by showing the surety partner your business is organized and you communicate well. An example would be to provide well-organized documents promptly to the surety underwriter when they are due. Late or incomplete documents are a sign that approving a bond could be a mistake.

Manage Your Finances

In contract bonding, not only do sureties need to see that it is unlikely you will need a bond payout, they also need to know you have the means to repay a claim if one does occur. For you as a contractor, this means you need a combination of low debt and strong credit, as well as the ability to remain solvent even if a repayment occurs. To grow your bonding capacity, it is essential for you to improve your finances, especially tangible assets. In the construction business, cash is king; and the more you have at your disposal, the better.

Expand Your Project Portfolio

When you have diverse, successful projects in your portfolio, it reduces the level of risk that a surety partner perceives. A lack of experience in an industry or being new to bonded projects is more likely to result in a bond claim, and sureties are highly aware of that potential danger.

They want contractors who have experience in the size and type of project the bonding needs. Start on a small scale in a new project field and make certain the project is a success. This shows the surety that you can work your way into new types of expertise without a significantly increased risk. NSSI can help you learn how to improve your bonding capacity.

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