Surety BondsGet The Facts!

Surety Bonds in Govt ContractingGet The Facts!

• Agenda– Introductions– Presentation– Q & A Please send your questions

Surety Bonds in Govt Contracting Get The Facts!

– Introductions:• Fed Bid Speed – B2G Software Mngt Tool• Fierce Govt – Govt IT Publication• Joshua Etemadi – Construction Bonds, Inc.• Jennifer Schaus – JS & Associates

Surety Bonds in Govt ContractingGet The Facts!

• Fed Bid Speed* Software program to manage B2G Opps

* Single click integration with FBO.gov

* Share notes & project manage RFP’s

Surety Bonds in Govt ContractingGet The Facts!

• Fierce Government* Free Govt Newsletter

* Agency News / Open Gov / Data Mngt

* Analysis / White Papers / Events

* In-depth & Quality = Differentiator

Surety Bonds in Govt ContractingGet The Facts!

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Surety Bonds in Govt Contracting Get The Facts!

• 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

Surety Bonds in Govt ContractingGet The Facts!

Surety Bonds in Govt Contracting Get The Facts!

Surety Bonds & Government Contracting

What is a Surety Bond anyway?

Surety Bonds in Govt Contracting Get The Facts!

Requirements & Opportunities

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

* Larger, more profitable contracts

* Only 20% contractors are bonded

* Can be differentiator / endorsement

Surety Bonds in Govt Contracting Get The Facts!

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/C’s

Payment Bond

Contractor will pay subs, laborers, material handlers

Surety Bonds in Govt ContractingGet The Facts!

Getting Started – The Steps* Get A Bonding Agent

* Obtain a Construction Oriented CPA

* Pull Your Credit Report* Review

* Make Corrections

* www.FTC.gov

Surety Bonds in Govt Contracting Get The Facts!

Bonding Advantages ---- The 3 “C’s”

Character – Integrity, Credit, Background

Capacity – Experience, History, Abilities

Capital – Cash is King!

#4 – Commitment - Indemnity

Surety Bonds in Govt ContractingGet The Facts!

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

Surety Bonds in Govt ContractingGet The Facts!

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!

Surety Bonds in Govt ContractingGet The Facts!

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: Don’t bid with a Cashiers Check!

Please send your questions here

Jennifer Schaus & AssociatesJSchaus@JenniferSchaus.com

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Josh EtemadiConstruction Bonds, Inc.7 0 3 – 9 3 4 – 1 0 0 0www.SBAbonds.com