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Contractors that
produce a standard "Contractors" CPA statement AND have a financial
"profile" within acceptable norms.
These contractors produce a CPA statement on a review or audit basis following
a percentage of completion method AND the financial strength, experience,
etc. place them in the 'standard" contractors class.
UNDERWRITING REQUIREMENTS:
- Contractor Questionnaire.
- Current CPA Fiscal
Year End (FYE) financial statement and prior year FYE statement.
- Work on Hand on
required format.
- Aging of accounts
receivable.
- Personal financial
statement from each owner.
- Owners resume and
resumes of key Forman / employees.
- Bank Line Letter.
BOND LIMITS:
Through our varied markets we can approve bonds in this class up to $50,000,000
or more per bond. Bonding amounts for this class are limited only by the
contractors experience and financial capacity.
LINES:
Here we follow the standard Surety Industry guidelines. Work program limits
based on 20 times working capital with consideration of expected annual
revenue and profit in backlog. Single job limits are also available up
to 150%(or more) of prior job experience.
RATES:
Rates for this class are typically $14.40 per thousand of contract for
first $500,000 / $8.70 next $2,000,000. PReffered rates such as $12.50
per thousand first $500,000 or lower are available.
Back to "How
We Evaluate A Contractor Account"
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