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​ In response to NASBP member requests for information about states prohibiting directed suretyship, NASBP has released its Survey of State Anti-Directed Surety Statutes   information map.   The map is the latest in a series the Association has produced to provide Members, Affiliates, Associates, and their clients information on local legislative activity, governmental initiatives, and other resources—right at their fingertips.   With bond producers often working in multiple states and impacted by various statutes, things can get confusing quickly. “A lot of the work our members do is state-level work, and all the different ...
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In just a decade since its 2007 inception, ConsensusDocs —which publishes standardized contracts written for and by those in the construction industry—has experienced sustained growth beyond expectations. “We doubled the stakeholders involved with ConsensusDocs (from 20 to 40), formalized organizational rules establishing how everyone must act fairly, quadrupled subscriptions using the documents, and established several industry-first standard contract documents—such as Integrated Project Delivery (IPD) and Building Information Modeling (BIM)—that are literally driving industry improvements,” said Brian Perlberg, Executive Director of ConsensusDocs . As ...
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   After working in the industry for more than 30 years, most recently serving as Executive Director of the Construction Industry CPAs/Consultants Association (CICPAC), John Corcoran has started his semi-retirement. Born in the Chicago area, Corcoran passed the notoriously difficult CPA exam in 1969, receiving certification in Illinois before moving to Arizona in 1972 to work in public accounting. In 1984 Corcoran accepted a position as CFO of a construction company, where one of his major responsibilities involved communication with those in the surety field. It was then that he discovered the joy of working with people in the construction/finance ...
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The American Institute of Architects (AIA) recently released the 2017 edition of its key agreements in the A201 family of documents. These design-bid-build agreements, updated every ten years to reflect the evolving construction industry, are universally seen as an industry standard and have crucial implications for surety bond professionals.   “The 2017 release included several revisions to AIA’s flagship document, the A201 General Conditions to the Contract For Construction ,” Kenneth Cobleigh, Esq., Managing Director and Counsel of AIA Contract Documents, said. “In addition, there were a number of revisions made to the A201-related owner-contractor ...
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As NASBP celebrates its 75th Anniversary, its Government Relations team remains focused on effecting positive change for the NASBP membership. Adapting to a changing political environment has always required a strategic government relations agenda—and NASBP continues to rise to the call. Infrastructure “There is a great deal of energy on Capitol Hill right now in terms of infrastructure development,” said Lawrence LeClair, Director of Government Relations at NASBP, who frequents congressional offices and U.S. House and Senate committee hearings. Legislation enabling investments in U.S. infrastructure has gained bipartisan support; the U.S. Senate ...
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The National Association of Surety Bond Producers (NASBP) is celebrating its 75 th Anniversary in 2017. To illustrate the Association’s history while looking toward the future, NASBP produced a series of exciting communication pieces to share with the NASBP membership—including a commemorative brochure, an illuminated six-panel historical exhibit, and a special anniversary edition of Surety Bond Quarterly magazine . Attendees at the NASBP 2017 Annual Meeting and 75th Anniversary Celebration, being held April 23-26 in Boca-Raton, Florida, will receive the full-color, 60-page commemorative brochure during registration. “The brochure will provide a ...
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Construction contractors need to work with a CPA who knows their industry to help ensure their financial performance is in line with healthy benchmarks and to remedy any signs of financial trouble, says Julian Xavier, CPA and managing principal of CliftonLarsonAllen, LLP 's Walnut Creek, CA office. Xavier serves on the NASBP CPA Advisory Council . CPAs can help contractors understand finances and plan accordingly, allowing them to win business as well as being more financially prepared. Xavier says healthy benchmarks for contractors include: * Cash greater than 5% of annual revenue * A line of credit of at least 5% of annual revenue * Tangible ...
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Construction-oriented certified public accountants (CPAs) have an advantage in helping contractors produce accurate, timely financial reports and address a wide range of risks, says Emilio F. Alvarez , founder and Managing Partner of NASBP Associate E.F. Alvarez & Co. The primary issue a construction-oriented CPA can address to help contractors is accuracy, which includes the use of the proper revenue-recognition method, the appropriate representation of underbillings and overbillings, and a conservative approach to revenue recognition on claims, says Alvarez, who serves on the NASBP CPA Advisory Council. http://www.nasbp.org/cpaadvisorycouncil/home The ...
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The number one issue construction contracting companies will face over the next 10 to 20 years is succession planning, according to accounting firm BKD, LLP . As the amount of wealth in the nation transfers generations, that also includes wealth tied to family-owned firms. The orderly transfer of control and assets is critical to the future success of these owner-managed or family-run enterprises. A lack of planning and clear succession causes many problems for companies and can be incredibly stressful for family members, owners and employees. Certified public accountants have a deep involvement in companies' financial operations and owners personal finances, ...
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An open dialogue between a surety, contractor, and certified public accountant is crucial to guide emerging contractors finding themselves in new territory when entering the surety market, says David V. Jean, a CPA and a principal of Albin, Randall & Bennett . It's pivotal for emerging contractors going to the next level to have strong financial-management practices in place, says Jean, who serves on NASBP's CPA Advisory Council , a NASBP resource team of CPAs with expertise in areas including financial issues concerning contract and commercial surety. The importance of an open dialogue comes with the need for continuous involvement by the CPA in order ...
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Selecting an accounting firm is a critical decision for construction firms, particularly those looking to qualify for bonding for a contract. Certified Public Accountants (CPAs) and other trusted advisers play an integral function to a construction firm seeking bonding, says Jack Callahan, CPA, Partner and Construction Industry Practice Leader at CohnReznick and a participant on the NASBP CPA Advisory Council . Callahan says his firm takes its role as an independent CPA for its contractor clients incredibly seriously. A key focus of the CPA is presenting financial information in an appropriate format that is in accordance with generally ...
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U.S. Reps. Richard Hanna (R-NY 22nd) and Reid Ribble (R-WI 8th) are retiring from Congress this year at the end of their terms, but not without working on significant legislation for the surety and construction industries. In recent interviews, they spoke about their accomplishments and challenges in Congress. U.S. REP. RICHARD HANNA Hanna said the most enjoyable part of his six years in Congress has been learning what it takes to make a bill become law, with a “perfect example” being the surety provisions that were included in the fiscal year 2016 National Defense Authorization Act (NDAA), which took about four years to accomplish. ...
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Surety professionals are facing a buyer's market, but they have opportunities to grow their businesses by providing valuable expertise and building key relationships, say panelists who served on the State of the Industry Panel at NASBP's 2016 Annual Meeting & Expo May 15-18, in Colorado Springs, CO. The panelists convened after NASBP CEO Mark McCallum's address on the morning of Tuesday, May 17. McCallum served as moderator. The panelists were Mike Bond of NASBP Affiliate Zurich North America; Joshua Etemadi of NASBP Member firm of Construction Bonds, Inc.—a Division of Murray Securus; John Knox of NASBP Affiliate SureTec Insurance Co.; and Bob Raney ...
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SuretyPAC, which has been NASBP's political action committee for more than two decades is a critical means for NASBP to advocate for the Association's federal legislative agenda. “SuretyPAC disbursements provide NASBP Government Relations staff with invaluable face-time to educate legislators in a more focused way on the merits and purpose of the product,” says NASBP Government Relations Committee Chair Kevin Garrity of the NASBP Member firm of Rose and Kiernan in East Greenbush, NY. SuretyPAC Chair Chris Leach of the NASBP Member firm of Arthur J. Gallagher, says the PAC's sole focus on the interests of surety is a crucial reason why key owners or officers ...
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A “laser focus” on talent development is crucial in succession planning, says Ron Magnus , Managing Director at the management consulting firm of FMI . Magnus will moderate the panel “Succession Planning: Can You Afford To Wait?” on Monday, May 16 at 10:30 am, at the 2016 NASBP Annual Meeting & Expo in Colorado Springs, CO. Magnus also will deliver a keynote address on unique ways to perpetuate success in one's career and personal life. “We encourage never leaning on just one person to be your successor, because the statistics will be working against you,” Magnus says. A strong salesperson might be ego-driven to think he or she would ...
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Joint ventures can serve a variety of purposes, with sureties playing a crucial role; but the parties involved must make sure the arrangement is legal, says Adrian L. Bastianelli, III, Co-Managing Partner of the national construction law firm of Peckar & Abramson in Washington, DC. Bastianelli and Michael C. Zisa, a Partner and Chair of the Surety Practice Group at Peckar & Abramson, will lead a continuing education presentation on joint ventures at NASBP's 2016 Annual Meeting May 15-18, in Colorado Springs, CO. One important purpose of a joint venture is to spread risk among contractors who are willing to share profits, Bastianelli ...
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NASBP provides its membership access online at www.nasbp.org , to maps that highlight local legislative activity, bonding thresholds and other valuable information across the United States. The maps feature: NASBP comment letters on bills and regulations State statutes authorizing public-private partnerships Federal, state and local agencies that certify disadvantaged business enterprises (DBEs), with hyperlinks to agency websites A survey of state bonding thresholds With ...
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A critical component of NASBP's 2016 legislative advocacy will be ensuring that surety bond requirements are included in public-private partnerships, or P3s, that involve federal loans, grants, and resources. NASBP is already focusing on the reauthorization of the Water Resources Development Act (WRDA), which includes a provision that provides grants and loan guarantees to states and localities for P3 agreements for water infrastructure projects. It is unclear, however, whether bonding provisions apply says Lawrence LeClair, NASBP Director of Government Relations. The bill will likely come up for reauthorization during the spring, he says. In the meantime, ...
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NASBP , along with AIG , GALLINA LLP , Liberty Mutual Surety , Travelers , and Zurich are working to conduct a pilot on the use of standards to reduce costs and streamline processing in the transfer of financial data between construction CPAs, contractors, agents and carriers. As part of this pilot, a glossary of digital terms (the technical term is "XBRL taxonomy") has been developed to represent the Work in Process (WIP) report. Other participants in the working group are the Construction Financial Management Association (CFMA) , the Financial Accounting Standards Board (FASB) and the Surety & Fidelity Association of America (SFAA) . XBRL ...
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One of NASBP's most significant legislative victories of 2015 was the signing of the National Defense Authorization Act (NDAA). See NASBP press release. That's because its amendments include a provision imposing stricter requirements on individual sureties looking to bond federal construction contracts, while another increases the guarantee provided through the Small Business Administration's Surety Bond Guarantee Preferred Program. The individual surety provision–which NASBP has sought for the last five years–limits the types of assets that such a surety can pledge to back a federal project. NASBP CEO Mark McCallum says the assets now must be those the ...
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