Understanding Surety Bonds & Expanding Your Company’s Bond Program Scott Mahorsky, President.

Understanding Surety Bonds & Expanding Your

Company’s Bond Program

Scott Mahorsky, President

Background

Bond Only Surety Agency Operating Nationally

5 Locations (Philadelphia, Pittsburgh, Buffalo, Norfolk & Charleston)

Over 100 years of Combined Surety Experience

Understanding of “Standard” & Federal Construction Market

$1.75 Billion in Construction Contracts in 2014

0 Losses since inception of MGI

Why is this Critical?

If your company can increase Revenue only $5M per year because of a larger/superior bond program at

10% Gross Profit, the result is $500,000.

Basics

What is a surety bond?

What are the different types of bonds?

Where do you get a bond?

Surety Companies

Large Market

Travelers

CNA

Liberty

Arch

Zurich

Medium/Small

Aegis

Hudson

Hanover

Allied

Hartford

How do I qualify for a bond program?

Character

Financial Strength

Important Factors

Ratios

Working Capital

Equity

Cost to Complete

Total Bond Program

Quality of Agent Makes a Difference

Average Agency Quality Agency Elite Agency $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Bond Capacity based on $1M Working Capital or Equity

X

10

X 2

0

X 1

5

Additional Qualifying Factors

Bank Line of Credit

Experience

Work History

Past Performance Evaluations/CCASS/CPARS

Resumes of Key Personnel

Awards

How to Maximize Your Bond Program

Obtain an Elite Bond Agency

Find a Quality Construction Accountant & Secure Solid Internal Accounting Systems

Target High Profit Low Competition Projects IDIQ, MATOC, MACC, SATOC

Build a Team

Construct a Long Range Plan/Strategy

Questions

Come Visit Us at Our Booth for Additional Questions