Government Contracting - Surety Bonds

7/28/2019 Government Contracting - Surety Bonds

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Surety BondsGet The Facts!


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Surety Bonds in Govt ContractingGet The Facts!

Agenda

Introductions

Presentation

Q & A Please send your questions


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Introductions:

Fed Bid Speed B2G Software Mngt Tool Fierce Govt Govt IT Publication

Joshua EtemadiConstruction Bonds, Inc.

Jennifer SchausJS & Associates


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Fed Bid Speed

* Software program to manage B2G Opps

* Single click integration with FBO.gov* Share notes & project manage RFPs


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Fierce Government

* Free Govt Newsletter

* Agency News / Open Gov / Data Mngt* Analysis / White Papers / Events

* In-depth & Quality = Differentiator


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Construction Bonds, Inc.Xxx

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Your Logo


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Jennifer Schaus & Associates B2G Services and Events

* GSA Schedules

* Federal Sales / Marketing

* Subject Matter Experts on Various B2G Components

B2G Govt Contractors Networking Event - March 19

http://JenniferSchaus3.eventbrite.com
http://jenniferschaus3.eventbrite.com/http://jenniferschaus3.eventbrite.com/


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Surety Bonds & Government Contracting

What is a Surety Bond anyway?


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Requirements & Opportunities

* Required for Fed / State / Local $100k +

* Larger, more profitable contracts

* Only 20% contractors are bonded

* Can be differentiator / endorsement


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3 Types of Contract Surety Bonds

Bid Bond

Submitted in good faith

Contractor agrees to bid price

Contractor submits Performance & Payment bond

Performance Bond

Protects owner/GC should contractor fail T/Cs

Payment Bond

Contractor will pay subs, laborers, material handlers
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JhsDatZcWjOoHM&tbnid=p4cgk-B4VHYyGM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.insuranceforinvestors.com%2Fconstruction%2Fbonds%2F&ei=cGU2Uf2qE-bM2QXI24DQAQ&bvm=bv.43148975,d.b2I&psig=AFQjCNGi8xzNQei6uIxbPo_wJpITDndz_w&ust=1362604591727370


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Getting Started The Steps

* Get A Bonding Agent

* Obtain a Construction Oriented CPA

* Pull Your Credit Report* Review

* Make Corrections

* www.FTC.gov
http://www.ftc.gov/http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=bRA8n1gBdC58oM&tbnid=7wcEdpgD_faPhM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.americansafeguardins.com%2Fbonds.html&ei=1WY2UbDgJof22gXe04CIAw&bvm=bv.43148975,d.b2I&psig=AFQjCNGi8xzNQei6uIxbPo_wJpITDndz_w&ust=1362604591727370http://www.ftc.gov/


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Bonding Advantages ---- The 3 Cs

Character Integrity, Credit, Background

Capacity Experience, History, Abilities

Capital Cash is King!

#4 Commitment - Indemnity


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Presenting Your Case

* Questionnaire, Resume, Business Plan, References

* Financial Statements Personal & Business

* Work In Progress, Bank Statements* Project Documents

* Bond Request

* Breakdown

* IFB / RFP

* General Indemnity Agreement


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If Your Case Is Not Perfect, then what?

* Collateral

* Funds Administration

* Small Business Administration (SBA)

Invisible Guarantee (90% w T-listed)

New Firms, Bankruptcies, Bank LOC, etc.

* Private Sureties

Buyer Beware!
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wIxRDnJ84_QBCM&tbnid=8PLiFsStYPC3uM:&ved=0CAUQjRw&url=http%3A%2F%2Fblog.wesellrestaurants.com%2Fbid%2F87112%2FRestaurant-for-Sale-Loans-SBA-Lending-and-Buying-a-Restaurant&ei=N2w2UeKWIuWp2QWXmoH4Cw&bvm=bv.43148975,d.b2I&psig=AFQjCNEWuHriUpeXAkz51QOxwqcX3XOSzw&ust=1362607527545221


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How Long Does It Take?

* 1st submission to surety = 1 week

* 2 - 3 days after established

* 1st call to 1st bond = 5 6 months

TIP: Dont bid with a Cashiers Check!
https://www.google.com/imgres?imgurl=http%3A%2F%2Fsztehetseg.hu%2FFile%2FDownloadPicture-4285db0a82bc4601ad80437fd9590b98%2FOriginal&imgrefurl=http%3A%2F%2Fsztehetseg.hu%2Fhu%2Fhirek%2Fknyt2012&docid=48EBY-alyafMoM&tbnid=yPiBeaKZ5CkOMM&w=453&h=346&ei=XWo2UcuVI6rI2AWLnoDAAw&ved=0CAMQxiAwAQ&iact=rics


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Please send your questions here
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=MJtlmiwDaUwRTM&tbnid=3VP-bjGufSBusM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.thyme-for-herbs.com%2F2009%2F10%2Fapplause.html&ei=NIAlUfOfM5CA2QWwiYD4DQ&psig=AFQjCNFJaOKr2i3grtYG6imrGrnfvci3_A&ust=1361498536055889


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Jennifer Schaus & Associates

[email protected]

www.JenniferSchaus.com

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Josh Etemadi

Construction Bonds, Inc.7 0 3 9 3 4 1 0 0 0

www.SBAbonds.com
http://www.sbabonds.com/http://www.sbabonds.com/http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=MJtlmiwDaUwRTM&tbnid=3VP-bjGufSBusM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.thyme-for-herbs.com%2F2009%2F10%2Fapplause.html&ei=NIAlUfOfM5CA2QWwiYD4DQ&psig=AFQjCNFJaOKr2i3grtYG6imrGrnfvci3_A&ust=1361498536055889