|   NASBP has compiled materials to help small and emerging contractors familiarize themselves with surety industry topics, terms, and practices. See the Articles, Forms, and Presentations below.
(Click on the title of each to view a brief summary and the download button.) ARTICLES NASBP has compiled the following articles to help small and emerging contractors familiarize themselves with surety industry topics, terms, and practices. - 1. Answers to 32 Questions Public and Private Owners Ask About Contract Bonding
This NASBP publication addresses questions frequently asked by public and private owners about surety bonds and the surety bonding process. It is intended to try to eliminate the misunderstandings and misconceptions that owners often have about the surety product and the bonding process.
[Download] - 2. Answers to 51 Questions Small Contractors Ask About Bonding
This NASBP publication addresses questions frequently asked by small and emerging contractors seeking to obtain surety credit and to grow their businesses. Surety professionals will find that these simple, straight-forward answers to complex questions can start a dialogue with clients about the bonding process.
[Download] - 3. Managing Subcontractor Risks of Non-Performance and Financial Failure: A Flash Guide to Subcontractor Bonds and Subcontractor Default Insurance
This is a two-page, easy-to-understand document that discusses the differences between subcontractor bonds and subcontractor default insurance. The first page provides an overall explanation, and the second page contains a comparison chart.
[Download] - 4. Understanding the Differences between Performance and Payment Bonds and Project Completion Services Agreements
This is a two-page, easy-to-understand document that discusses the differences between contract bonds and a project completion services agreement. The paper explains that the proposed services in a project completion services agreement are not a proper substitute for the protections of performance and payment bonds.
[Download] - 5. Joint Check Agreements: Another Important Tool for Sureties and Contractors
Joint Check Agreements are an effective tool for sureties and contractors (and owners and subcontractors and suppliers) to ensure that downstream parties are paid, minimizing the possibility of liens against the property and of payment bond claims. All parties to a joint check agreement should be familiar with the “joint check rule,” which has been adopted in a number of jurisdictions.
[Download] - 6. The Devil Is In The Details–Bond and Lien Notice Pitfalls
This article, first published in NASBP’s magazine, Surety Bond Quarterly, explains how and why contractor, subcontractor, and supplier claimants must strictly comply with bond and lien notice requirements or risk losing their bond and lien rights.
[Download] - 7. Funds Administration: An Important Tool for Sureties and Contractors
Funds administration is a method that sureties use to minimize the possibility of a claim against a payment bond. Funds administration can benefit contractors as well by enhancing a contractor’s ability to obtain surety credit and learning how to manage cash flow and project funds.
[Download] - 8. State and Local DBE Certifying Agencies and Private Entities
This document contains the websites of Disadvantaged Business Enterprise (DBE) Certifying Agencies throughout the country, organized by state and department. Users can utilize this information to quickly access information on certifications in their states and cities.
[Download] - 9. Balancing Construction Projects With Sound, Financial Decision Making and Proven Risk Management
This article, by Todd Schaap of Shorewest Surety Services, Inc., in Franksville, WI, describes how a bond producer can assist a contractor with financial expertise, subcontractor risk management, and relationship building.
[Download] - 10. “AIA-AGC Primer on Project Delivery-Second Edition”
This informative document, jointly written by the American Institute of Architects (AIA) and Associated General Contractors of America (AGC), provides basic definitions and characteristics of the construction industry’s four primary delivery methods: Design-Bid-Build, Design-Build, Construction Management at-Risk, and Integrated Project Delivery. 2011 edition. 15 pages
[Download] - 11. The Contract Surety Bond Claims Process–AGC
This 7-page document, developed by the Associated General Contractors of America, with input from NASBP and SFAA, provides owners, contractors, subcontractors, and other construction industry stakeholders with a basic understanding of the contract surety claims process. This is an updated version of a document developed by AGC in 2004. Find information on types of contract surety bonds, what obligees should expect in a performance default situation, what a claimant should expect in a payment bond claims situation, and many other topics.
[Download] - 12. Don’t Be a Victim of Fraud: Verify the Surety and Its Bonds
When selecting a surety, a small and emerging contractor should take steps to verify the legitimacy of the surety and to ensure that the surety authorized the bond. This article describes ways to help assure that a surety and the surety’s bonds are genuine and provide the promised protection.
[Download] - 13. Always Verify Your Bond!
This one-page summary of the article above describes the two-step process to help contractors verify the authenticity of surety bonds.
[Download] - 14. Understand Your Bond Before You Sign
Before signing a surety bond, a contractor should understand the terms of its obligations, responsibilities, and risks stated in the bond. This article describes the anatomy of a bond and problematic language.
[Download] - 15. What You Should Know About General Agreements of Indemnity and Why You Should Know It
The surety company will require that the contractor execute a general agreement of indemnity (GIA) before it will issue bonds on behalf of the contractor. GIAs can have a powerful impact on the contractor and his/her construction business. Read this article and learn some of the terms and conditions typically found in GIAs.
[Download] - 16. Make Sure the Relationship Fits: Become an Educated Consumer by Qualifying the Surety Bond Producer and the Surety
A contractor can benefit from these valuable tips about qualifying and selecting two important members of its advisory team: the bond producer and the surety company. Choosing the right bond producer and surety helps assure the construction company’s growth and development with regard to surety credit and financial documentation.
[Download] - 17. A Quick Introduction to Construction Risks and Contracting Practices
To protect their business, contractors should have an awareness and knowledge of these basic facets of construction risk. This article provides nine checklists to help contractors identify, assess, and manage risks on a specific project.
[Download] - 18. Understanding Dispute Resolution Options in the Construction Industry
This article describes the four primary dispute resolution options in the construction industry i.e. litigation and the three key alternative dispute resolution methods.
[Download]
FORMS NASBP has compiled the following forms to help small and emerging contractors familiarize themselves with surety industry topics, terms, and practices. - Small Business Contractor Questionnaire
This simple form acquaints contractors with the information they may be asked to provide when they initiate a relationship with a surety bond producer. In fact, a NASBP bond producer may provide this form to the contractor during an intake interview.
[Download] - Professional Service Providers Worksheet
This convenient worksheet helps a contractor assemble the full contact information of professional service providers who are critical to the success of the contractor’s construction business.
[Download]
PRESENTATIONS NASBP has compiled the following PowerPoint presentations to help small and emerging contractors familiarize themselves with surety industry topics, terms, and practices. U.S. SBA Surety Bond Guarantee Program Offers Assistance to Small, Emerging Contractors: - ‘Open the Door To Bonding’ — U.S. Small Business Administration Surety Bond Guarantee Program for Small Businesses
 This PowerPoint presentation describes the basics of surety bonds and how a construction company can obtain a bond by participating in the U.S. SBA Surety Bond Guarantee Program. The presentation addresses the bonding process and the characteristics of firms that qualify to participate in the SBA Program, the SBA Program’s bond application process including the QuickApp system, and the SBA fees i.e. the contractor’s bond costs that can be paid electronically through the Pay.Gov system. It concludes with information about how to locate an SBA bond producer and the SBA Program’s primary contacts.
[Download]
Professional Relationships Important to Construction Firms: - The Value of Professional Surety Bond Producers
This PowerPoint presentation describes how professional surety bond producers specialize in providing surety bonds to contractors, subcontractors, and other construction project participants. The presentation describes the role of the producer, keys to a successful relationship with a producer, questions to ask when selecting a producer, and resources where you can find a producer.
[Download]
- The Value of a Knowledgeable Construction/Surety Attorney
This PowerPoint presentation describes how knowledgeable construction/surety attorneys are invaluable legal advisors and business advisors to small and emerging contractors. This presentation describes the areas of law that these attorneys should know, their role in helping small and emerging contractors, the keys to a successful relationship with them, questions to ask when selecting one, and resources where you can find construction/surety attorneys.
[Download]
- The Value of Small Business Bankers
This PowerPoint presentation describes how knowledgeable bankers can provide invaluable business and financial advice to small and emerging contractors. This presentation describes small business bankers for construction firms, their education and experience, their role as a small business banker, keys to a successful relationship with a banker, questions to ask when selecting one, resources where you can find a small business banker in your area, and tips to remember.
[Download]
- The Value of Construction-Oriented Certified Public Accountants
This PowerPoint presentation describes how knowledgeable construction-oriented certified public accountants (CPAs) are critical to the financial management of a small and emerging contractor’s business. This presentation describes CPAs, the role of a construction-oriented CPA, keys to a successful a relationship with construction-oriented CPA, questions to ask when selecting one, and resources where you can find a construction-oriented CPA in your area.
[Download]
What To Expect: What Small and Emerging Contractors Need to Know: - Understanding Collateral
This slide presentation explains why sureties sometimes require collateral from a contractor, how collateral benefits small and emerging contractors, how its centralization process works, and the forms of collateral accepted by sureties (cash, ILOC, and real estate) as well as those forms not accepted by sureties.
[Download]
- Understanding General Agreements of Indemnity
This PowerPoint presentation provides an overview of general agreements of indemnity (GIAs), an explanation why sureties require contractors to sign GIAs, and a list of key points to remember about GIAs. Also, the presentation describes eight key provisions of the GIA: indemnification, right to enforce the GIA, right to settle, prima facie evidence, collateral, assignment, right to examine books and records, and duty to cooperate.
[Download]
- Understanding Dispute Resolution Options in the Construction Industry
This PowerPoint presentation provides an overview of dispute resolution in the construction industry, tips about selecting and negotiating dispute resolution methods, a description of the four primary dispute resolution options in the construction industry—litigation and the three key alternative dispute resolution methods developed to address criticisms of litigation, and key points to consider about dispute resolution options.
[Download]
- Introduction to Construction Contracts and Analyzing Risks
This PowerPoint presentation provides a list of the risks and exposures that contractors should identify, an explanation why understanding the construction contract is critical, a description of the typical components of a construction contract, a list of provisions often part of the general conditions, a description of contractual risks, a list of the industry’s standard form contracts, a list of cautions about working with standard form contracts, and a resource where you can find checklists to help identify, assess, and manage risks on a specific project.
[Download]
- Understanding the Basics of Contract Surety Bonds
This PowerPoint presentation describes how surety bonds are unlike traditional insurance policies; defines the general agreement of indemnity and the three main types of contract surety bonds: bid bonds, performance bonds, and payment bonds; explains the surety prequalification process of a contractor or subcontractor; lists who requires contract bonds for projects; and explains the importance of professional service providers to contractors seeking bonds.
[Download]
- Understanding Funds Administration
This PowerPoint presentation describes the funds administration method that sureties use to offset the possibility of a claim against a payment bond. This PowerPoint describes the steps involved in the funds administration process and the ways funds administration benefits small and emerging contractors.
[Download]
- What Small and Emerging Contractors Need to Know — Introduction to Project Delivery Methods
This PowerPoint presentation describes the four most common project delivery methods: Design-Bid-Build (DBB), Design-Build (D-B), Construction Management at-Risk (CMAR), and Integrated Project Delivery (IPD). While there is no one “best” delivery method, there are advantages and disadvantages in using each method as described in this presentation.
[Download]
- Understanding Selected Key Provisions of Construction Contracts
This presentation describes key provisions of construction contracts including: scope-of-work, contract time, change orders, damages, waiver of consequential damages, liquidated damages, no damage-for-delay, pay-if-paid, pay-when-paid, indemnity, insurance and bond, payment, notice provisions, warranties/correction of work period, termination, dispute resolution. [Download]
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This PowerPoint presentation describes the basics of surety bonds and how a construction company can obtain a bond by participating in the U.S. SBA Surety Bond Guarantee Program. The presentation addresses the bonding process and the characteristics of firms that qualify to participate in the SBA Program, the SBA Program’s bond application process including the QuickApp system, and the SBA fees i.e. the contractor’s bond costs that can be paid electronically through the Pay.Gov system. It concludes with information about how to locate an SBA bond producer and the SBA Program’s primary contacts.
This PowerPoint presentation describes how professional surety bond producers specialize in providing surety bonds to contractors, subcontractors, and other construction project participants. The presentation describes the role of the producer, keys to a successful relationship with a producer, questions to ask when selecting a producer, and resources where you can find a producer.
This PowerPoint presentation describes how knowledgeable construction/surety attorneys are invaluable legal advisors and business advisors to small and emerging contractors. This presentation describes the areas of law that these attorneys should know, their role in helping small and emerging contractors, the keys to a successful relationship with them, questions to ask when selecting one, and resources where you can find construction/surety attorneys.
This PowerPoint presentation describes how knowledgeable bankers can provide invaluable business and financial advice to small and emerging contractors. This presentation describes small business bankers for construction firms, their education and experience, their role as a small business banker, keys to a successful relationship with a banker, questions to ask when selecting one, resources where you can find a small business banker in your area, and tips to remember.
This PowerPoint presentation describes how knowledgeable construction-oriented certified public accountants (CPAs) are critical to the financial management of a small and emerging contractor’s business. This presentation describes CPAs, the role of a construction-oriented CPA, keys to a successful a relationship with construction-oriented CPA, questions to ask when selecting one, and resources where you can find a construction-oriented CPA in your area.
This presentation provides the steps to find a professional surety bond producer and a description of what you can expect in the first meeting.
This slide presentation explains why sureties sometimes require collateral from a contractor, how collateral benefits small and emerging contractors, how its centralization process works, and the forms of collateral accepted by sureties (cash, ILOC, and real estate) as well as those forms not accepted by sureties.
This PowerPoint presentation provides an overview of general agreements of indemnity (GIAs), an explanation why sureties require contractors to sign GIAs, and a list of key points to remember about GIAs. Also, the presentation describes eight key provisions of the GIA: indemnification, right to enforce the GIA, right to settle, prima facie evidence, collateral, assignment, right to examine books and records, and duty to cooperate.
This PowerPoint presentation provides an overview of dispute resolution in the construction industry, tips about selecting and negotiating dispute resolution methods, a description of the four primary dispute resolution options in the construction industry—litigation and the three key alternative dispute resolution methods developed to address criticisms of litigation, and key points to consider about dispute resolution options.
This PowerPoint presentation provides a list of the risks and exposures that contractors should identify, an explanation why understanding the construction contract is critical, a description of the typical components of a construction contract, a list of provisions often part of the general conditions, a description of contractual risks, a list of the industry’s standard form contracts, a list of cautions about working with standard form contracts, and a resource where you can find checklists to help identify, assess, and manage risks on a specific project.
This PowerPoint presentation describes how surety bonds are unlike traditional insurance policies; defines the general agreement of indemnity and the three main types of contract surety bonds: bid bonds, performance bonds, and payment bonds; explains the surety prequalification process of a contractor or subcontractor; lists who requires contract bonds for projects; and explains the importance of professional service providers to contractors seeking bonds.
This PowerPoint presentation describes the funds administration method that sureties use to offset the possibility of a claim against a payment bond. This PowerPoint describes the steps involved in the funds administration process and the ways funds administration benefits small and emerging contractors.
This PowerPoint presentation describes the four most common project delivery methods: Design-Bid-Build (DBB), Design-Build (D-B), Construction Management at-Risk (CMAR), and Integrated Project Delivery (IPD). While there is no one “best” delivery method, there are advantages and disadvantages in using each method as described in this presentation.
This presentation describes key provisions of construction contracts including: scope-of-work, contract time, change orders, damages, waiver of consequential damages, liquidated damages, no damage-for-delay, pay-if-paid, pay-when-paid, indemnity, insurance and bond, payment, notice provisions, warranties/correction of work period, termination, dispute resolution.