The obligee’s motion to dismiss the sureties’ complaint was denied, but not because the court found the underlying construction contract’s ADR provision inapplicable to the sureties. Instead, it found the contract language failed to qualify the term as a condition precedent to commencing litigation and thus was no barrier to the sureties’ suit. The court’s decision 1 upheld the magistrate’s initial finding 2 and the magistrate’s determination on the obligee’s motion for reconsideration. 3 In 2020 the plaintiffs-sureties in the matter, Travelers Casualty and Surety Co. and Liberty Mutual Insurance Co
On September 30, 2013, NASBP sent comments to Stanislaus County, CA requesting they remove the long term warranties they placed in the project's proposed contract
Stanislaus County Long Term Warranties 09302013.pdf
What are Surety Bonds? Who are Surety Bond Producers? What are Surety Companies? What are the Benefits of Surety Bonding? Who Are Surety Bond Producers?
Interest in international commercial surety bonds has risen in several regions of the world, creating opportunities and challenges for producers, said Kathleen Mitchell, National Practice Leader for Surety at Wells Fargo Insurance Services USA, Inc
OUT OF THE FOOTNOTES AND INTO THE FIRE Construction companies often lease property and equipment that, under the updated standards, will now be recorded on their balance sheet. Any lease with a term of one year or more will need to be recorded as a right-of-use asset and liability and amortized over the full lease term. That could have a massive impact on working capital calculations throughout the industry because any long-term leases will also be recorded as current liabilities, compared to just long-term assets
Bonding terms for projects can sometimes far exceed the norm in terms of the surety industry's standards and practices. It’s important for surety professionals to look for these types of onerous terms and address them early in the contracting process, said Tom Kelleher, senior partner with the law firm of Smith, Currie & Hancock
A recurrent theme in my discussions with NASBP members and affiliates is that surety bonding is little understood by many, even by bond obligees and principals
Going forward there will be a long-term asset offset by a current liability and a long-term liability...Follow these basic steps to transition from your current accounting procedures to the new standard: Determine the lease term under ASC 840
This materiality consideration should take into account the purpose of the standard while also weighing reporting that is meaningful to the readers of the financial statements. I have short-term leases; do I have to apply this new standard to them? A lessee can elect (by asset class) for short-term leases not to record on the balance sheet a lease that, at the commencement date, has a lease term that is 12 months or less and does not include a purchase option that the lessee is reasonably certain to exercise. The 12-month threshold for the short-term lease exemption is a bright-line exception to the lessee recognition requirements in Topic 842