He then asked: Sarah, why do you get up every morning and go to work? Why is it you love what you do? I immediately started to consider all of the aspects of why is it we do what we do and love it. Where do I start? While the surety business certainly involves careful financial analysis and getting the paperwork correct, it is in its purest form a people business built upon relationships with clients and all of the people that make a client successful, including their surety. As a surety professional the thing that I love the most is being able to make a difference by providing clients with the advice to make them better at what they do. Tom s company, the client mentioned above, is an example of why I love what I do. A little over five years ago, Tom and three of his close business associates came to visit me with a vision and the start of a plan on how to achieve that vision. They were working for a large company that was not a client of mine and were interested in starting a new venture.

They knew they were going to need bonds and insurance which is why they called me, but they also needed assistance in a number of other areas. They needed advice on personnel, contracts, professional advisors, office space, industry trends and a number of related issues. Not only did they need advice, but they also needed something as fundamental as a place to meet and plan their future and someone familiar with their specialty field of construction to bounce ideas off of and keep moving in the right direction. For the months leading up to their start up, I would meet with them to discuss their plans and to make sure we had addressed as many of the concerns and issues we could. Finally, the day came and they made the leap and started their business with less than 10 employees, no contracts but with a professional team that included my agency and a surety interested in working with them. There was a lot to do to get things started. They needed to get work, sign contracts, hire employees and begin to forge a relationship with a surety. At the first year end, things were slower than they expected, but they did make a profit.

Now fast forward five years! The company is still around. As a matter of fact, it is thriving with over 200 employees, sales in excess of $45 million and a loyal surety professional and surety that has been with them from the start. The company is considered to be one of the best trade contractors in our region. Their success was hard-earned and well deserved. Of course, Tom and his partners were the ones that made this all happen. But each day I take great personal satisfaction in knowing that I was part of the process and contributed to this company s success. I am sure all of us have experienced a similar situation. Whether it is helping a company when it first starts out, taking a company to a second generation of leadership, or assisting a struggling company stay in business, this is what I love to do and what gets me up in the morning. I know of no other business that provides these unique opportunities and give us all the chance to establish such close relationships with people we consider to be both clients and friends. It is this value that we bring to work every day. It is not only about writing surety bonds but it is about creating success.

Sarah Finn is National Surety Vice President of IMA of Colorado, Inc. in Denver, Colorado. She can be reached at sarah.finn@imacorp.com.

To achieve a LEED certification level or rating, decisions and follow-through actions must be made by all members of the project team that is, each principal project participant the owner, the designer, and the constructor will bear some responsibility to achieve the desired outcome or rating. Optimally as some commentators relate the principal project participants engaged on a green building project likely will pursue an integrated approach to the design and construction of the facility. In such an environment, responsibilities may be shared, leaving bright-line distinctions among the respective responsibilities of the parties not always discerned easily.

The inclusion of new and innovative techniques and materials and the potential for blending traditional lines of project responsibilities by utilizing a green building approach raises a number of issues. How might green building practices impact underwriting considerations and the liability of contractors and of sureties providing performance bonds? I m not sure that anyone has the exact answers at this point in time, but I do know that there is no time like the present for the surety industry to be thinking about these questions. I cannot help but believe that, in view of public and private owners considerable interest in pursuing green building projects, the surety industry should be proactive, not complacent, in being aware of and examining the issues posed by green construction. To that end, prudent producers and sureties will need to take a careful look at construction contracts incorporating green building requirements. They will have to ascertain that the construction contractor understands the scope of its green building responsibilities and possesses the requisite experience and qualifications to perform the techniques and to work with the new materials called for in the contract. Special attention will need to be paid to the specifications and warranty provisions so that the contractor is not unwittingly agreeing to risk shifting language that ensures that the contractor will warrant certain building performance results or outcomes, especially outcomes that are beyond the scope and control of the contractor.

Is the contractor being asked to certify as to the level of recyclable content in a material specified by the architect? Is the contractor being asked to guarantee a certain level of yearly energy savings in the operation of the facility? Are there environmental protection requirements being placed on the shoulders of the contractor that are outside the contractor s control or that exceed existing legal parameters? These are just a few potential red flags; no doubt you will think of and see many more. The key, simply put, is to be prepared to look for and understand the ways in which green building requirements may change the nature of the contractor s undertaking and to assess whether the contractor is in the proper position to manage such undertaking.

Recently, a number of states, counties, and municipalities have considered and, in some instances, enacted laws requiring or encouraging green building practices. These laws have taken various approaches. One such law, the Green Building Act of 2006, was enacted at the end of 2006 by the District of Columbia. Among other things, this new DC law incorporates green building requirements, in the form of LEED criteria, into the construction code for public and private construction of a certain size. These requirements will be phased in over a period of years. Of particular interest is a requirement that any party applying for a construction permit provide security, in the form of cash, a letter of credit, or a performance bond, which may be forfeited in the event that the building fails to meet the law s verification requirements.

It is evident from a reading of the performance bond requirements contained in the new law that the underwriting and operation of surety bonds was not well understood by the drafters. Due to concerns with such requirements, NASBP and The Surety & Fidelity Association of America (SFAA) recently submitted written comments to the DC Government (which may be accessed by clicking here) and are coordinating efforts with the legislative committee of the Associated General Contractors of Metropolitan DC.

If the new DC law is a harbinger of things to come, surety professionals must be poised to offer their expertise to legislators and to clients to sort through issues posed by green building requirements and to ensure that such requirements are not implemented at the expense of the building team and those that provide them surety credit.

These materials are provided to NASBP members solely for educational and informational purposes. They are not to be considered the rendering of legal advice in specific cases or to create a lawyer-client relationship. Readers are responsible for obtaining legal advice from their own counsels, and should not act upon any information contained in these materials without such advice.

1. Revised Contractor Questionnaire download in Word and pdf
2. New! Contract Bond Request Form download in Word and pdf
3. New! Bid Bond Request Form download in Word and pdf
4. New! Performance and Payment Bond Request Form download in Word and pdf
5. New! Personal Financial Statement download in Excel and pdf
6. Revised Work In Progress (Detailed) Only available to download in Excel
7. New! Work in Progress (Simple) download in Excel and pdf

Once the forms are downloaded in Word or Excel, they can be completed and forwarded on to a client or underwriter for review. Each form has the added convenience of allowing members to customize the forms by inserting a company logo and contact information. We expect that members will utilize the Toolkit items branded with their own agency logo in their day to day operations, added Buschmann.

The hard work of the Automation & Technology Committee does not end with this release. The Committee plans to expand the Producers Tool Kit with more template forms in the near future. Additional tools are in the queue and member suggestions for new forms are strongly encouraged, related Buschmann.

Template forms in the queue include the following:

• Service Contractor Questionnaire,
• Status Inquiry,
• Financial Statement Analysis,
• Credit Report Authorization Letter,
• Notice of Privacy Policy, and
• Job Completion Agreement.

For more information about the Producers Tool Kit, contact Dave Golden at dgolden@nasbp.org

Remarking on the impending release, NASBP President Sarah Finn said, the new ConsensusDOCS forms represent how the industry as a whole is seeking ways in which it can come together for the betterment of all project stakeholders. Contracts and bond forms exemplifying fair risk allocation and industry best practices are an important focus of bond producers, who advocate individually and legislatively for use of such agreements by and for their clients so they can obtain the bonding capacity needed for their businesses”, she added.

The coalition, initially organized under the name of Consensus Industry Contracts Council (CICC), recently changed its name to ConsensusDOCS . A graphic, like the one shown above, will be displayed on each form document, indicating those industry organizations that are endorsers of that particular document. The following organizations participated in the development of various ConsensusDOCS forms:

1. Associated Building Contractors (ABC),
2. Associated General Contractors of America (AGC),
3. Associated Specialty Contractors, Inc. (ASC),
4. American Subcontractors Association, Inc. (ASA),
5. Construction Owners Association of America (COAA),
6. Construction Industry Round Table (CIRT),
7. Construction Users Roundtable (CURT),
8. Finishing Contractors Association (FSA),
9. Lean Construction Institute (LCI),
10. Mechanical Contractors Association of America (MCAA),
11. National Association of State Facilities Administrators (NASFA),
12. National Association of Surety Bond Producers (NASBP),
13. National Electrical Contractors Association (NECA),
14. National Insulation Contractors Association (NICA),
15. National Roofing Contractors Association (NRCA),
16. National Subcontractors Alliance (NSA)
17. Painting and Decorating Contractors of America (PDCA),
18. Plumbing-Heating-Cooling Contractors National Association (PHCC),
19. Sheet Metal and Air Conditioning Contractors National Association (SMACNA), and
20. The Surety & Fidelity Association of America (SFAA).

Each ConsensusDOCS form was drafted with the philosophy of keeping the project s best interests, rather than a single stakeholder s interest, at the forefront of risk allocation choices. ConsensusDOCS drafters also focused in the forms on addressing the use of and responsibilities surrounding technological innovations, such as electronic communications and Virtual Building Environment, also called Building Information Modeling (BIM).

The ConsensusDOCS form library includes a comprehensive suite of standardized bond forms, including performance and payment bond forms coordinated with agreements between contractor and owner (260 and 261), design-builder and owner (470, 471, 472, and 473), and general contractor and subcontractor (706, 707). Prime (262) and subcontractor (760) bid bond forms for agreements also are available. A warranty bond (263) coordinated for the agreements between contractor and owner also is included.

Once released, these bond forms along with other ConsensusDOCS forms can be purchased in electronic format at www.ConsensusDOCS.org through a subscription or a la carte system, titled Meter Mode.

The diversity of buy-in for these contracts is unprecedented and of historic proportions and reflects a genuine desire by these organizations to develop forms that will assist the construction industry to reach higher productivity levels.

NASBP Past President Steve Cory of Cory, Tucker, Larrowe, Inc. in Metairie, LA, also believes that systems such as Zurich s are needed for the industry. “As the Gulf Coast recovers from Katrina we have seen numerous fraudulent payment and performance bonds accepted by unwitting public owners, related Cory. It would seem that Zurich’s Bond Validator will provide owners and others a means to easily check the validity of a bond; other companies may want to consider similar systems to protect the integrity of their product,” added Cory.

With Zurich s Surety Bond Validator system, an agent, customer or obligee can check the status of a bond and confirm its accuracy by visiting http://www.zurichna.com/surety/bondValidator.nsf/Validate!OpenForm
The Bond Validator screen search requires entering the bond number with one additional piece of coverage information, such as the name of the principal, the bond penalty amount, the effective date, or the name of the obligee or owner. If the bond is valid, a confirmation appears within seconds, Cheatham said.

If the bond is not in Zurich’s system, the visitor will receive a notice listing possible reasons why, such as the information entered was incorrect or the bond has not yet been reported to Zurich by the issuing agent. If there is a question about the bond, site visitors, with the click of a button, can ask to be contacted or they can call 800-821-4635 to speak with someone at Zurich who will investigate the bond and respond within 48 hours.

• Special NASBP Single/Double Room Rate – $195 (plus applicable taxes)
• Reservation Deadline: Monday, September 10, 2007 – Please remember that the NASBP Room block may sell out before the cut-off date of September 10 resulting in a higher room rate or lack of availability at the resort.
• To make reservations, contact the Laguna Cliffs Marriott directly at 800-533-9748
• Group Name: NASBP GROUP

Click here for Schedule and more information about this Meeting.
Click here for the PDF of the Regions 1, 2, & 3 Meeting brochure.

Description:

To provide technical and sales support in processing and issuance of surety bonds in accordance with the objectives and procedures outlined by Hilb Rogal & Hobbs. Responsible to the Assistant P&C Practice Leader. Works with Producers, Account Executives and other unit personnel. Job Classification: 22 Status: Exempt

Responsibilities:

• Maintain account folders and computer files according to established procedures
• Issue bonds as requested by production units and/or clients
• Process invoices for new, renewal, and cancellation transactions
• Prepare Contractors Questionnaires, General Indemnity Agreements and other documents for submissions
• Market new and renewal business in conjunction with Account Executives and the Producers
• Maintain direct communication with surety company underwriters and insureds on servicing of accounts
• Maintain updated copies of client financial statements both corporate and personal
• Maintain updated bank Letters of Credit and Work in Progress forms
• Review contracts and agreements for insureds for bonding implications
• Keep informed of industry developments through review of trade press and by attending company training meetings on new products
• Conduct on-going analyses of accounts
• Perform other duties as required or as instructed by the Account Manager
• Pursue a program for personal and professional development
• Uphold and promote the professional and ethical standards of the agency

Requirements:

• A high school diploma with a college degree desirable
• Four to five years experience in the bonding industry, with at least 2 years on the agency side
• Above average phone personality and ability to deal with people
• Good computer skills
• Detail oriented with excellent organizational abilities
• Strong knowledge of surety bonding requirements and principles
• Basic technical education necessary and should be pursuing professional courses (ASFB)
• Holds Illinois property-casualty insurance agent s license

Contact:

Lucy Bischoff
HR and Communications Specialist
Lucy.Bischoff@hrh.com
phone 630-324-2662
fax 630-324-2663

2) OHIO CASUALTY INSURANCE COMPANY Ohio Casualty is an EOE.

Location: Hamilton, OH
Position: Senior Bond Claim Analyst

Responsibilities:

• To conduct investigations on the most complex fidelity and surety claims establish reserves within authority levels
• Approve settlement reserves within authority levels for other bond claim staff and
• Provide technical expertise to department staff in handling fidelity and surety claims

Requirements:

• Qualified candidate will have significant experience in contract surety claims handling
• Ability to travel and inspect construction sites
• Successful completion of AFSB program of IIA is preferred

Contact:

Lindsey Bringman
Corporate Employee Relations & Employment
Lindsey.Bringman@ocas.com
phone 513-603-2034
fax 513-603-3181

Interested candidates should apply online at www.ocas.com

3) CAPITOL INSURANCE COMPANIES Capitol Insurance Companies is an EOE.

Location: Near Madison (Middleton), WI.
Position: Regional Manager for Commercial Surety & Fidelity Underwriting Office

Description:

Meet corporate objectives for the Capitol Insurance Companies Commercial Surety and Fidelity department by maintaining final accountability within the mid-west region. Perfect next step for a current Senior Underwriter!

Responsibilities:

• Create and develop the desired level of distribution of business by analyzing our business environment and competition
• Interpret and implement company policy, procedures and guidelines while providing guidance to staff on technical matters
• Motivate production by acting as a liaison to agents and clients

Requirements:

• Bachelor s Degree, or equivalent
• 7 to 10 years of experience in commercial surety underwriting and management responsibilities
• Ability to analyze financial statements and credit reports
• Ability to communicate well with all levels of the organization
• Ability to manage in a positive way within a high-energy environment
• Some travel required
• AFSB or CPCU designations are preferred

Contact:

fax resume to 608-829-7409

Hayley L. Hellenbrand
PHR, Senior Human Resources Specialist
jobs@capitolindemnity.com
phone 608-829-4282

Visit www.capitolindemnity.com for more company information.

4) CNA SURETY CORPORATION, one of the largest U.S. surety companies, currently has underwriting opportunities in the following two locations. CNA Surety Corporation is an EOE.

4a) Location: Farmington Hills, MI
Position: Underwriting Consultant

Responsibilities:

• Underwrites and services the most complex accounts in a branch office
• Analyzes, evaluates and reviews new business with superiors as necessary
• Responsible for producing new accounts from assigned group of agents/brokers or designated geographical area
• Underwriting authority is determined by the Manager
• May have responsibility for training and/or supervision of entry-level underwriters and/or support staff

Requirements:

• College degree in Finance, Accounting, Business Administration or equivalent business experience required
• Minimum of five years underwriting experience
• Excellent verbal and written communication skills
• Strong interpersonal skills with the ability to interact with both internal and external clients
• Excellent planning and organization skills
• Ability to use PC applications

4b) Location: Seattle, WA
Position: Underwriting Specialist

Responsibilities:

• Responsible for producing new accounts and servicing existing bond accounts in a field office
• Analyzes, evaluates and refers new and existing business to the Bond Manager or Territorial Underwriting Manager
• Underwriting authority is determined by the Manager

Requirements:

• College degree in Finance, Accounting, Business Administration or equivalent business experience required
• Minimum of two to four years underwriting experience
• Excellent verbal and written communication skills
• Strong interpersonal skills with the ability to interact with both internal and external clients
• Excellent planning and organization skills
• Ability to use PC applications

Contact:

fax resume to 312-817-1759

Alison Hitpas
Human Resources Coordinator/Recruiter
alison.hitpas@cnasurety.com
Visit www.cnasurety.com for more company information.

The Fast Track procedures under the AAA’s Construction Industry Arbitration Rules and Mediation Procedures were designed for cases involving claims of $75,000 or less. However, by agreement of the parties, these fast track procedures can be used for construction cases of any amount.

The benefits of Fast Track procedures include:

• One-day hearing in most cases, with a flat rate for arbitrator compensation.
• An expedited arbitrator appointment process, with party input.
• Requirement of a hearing within 30 calendar days of the arbitrator’s appointment.
• An award in no more than 14 calendar days after the closing of the hearing.
• A 60-day “time standard” for case completion.
• Access to the same highly qualified construction arbitrators who serve in regular track cases. These arbitrators include experienced construction lawyers, architects, engineers, contractors, and other construction industry professionals.

For more information about the Fast Track procedures click here, or contact AAA customer service at 1-800-778-7879 or Websitemail@adr.org

• The Bankers Insurance Company (NAIC #33162), has been certified and added to the Treasury’s Listing of Approved Sureties effective June 20, 2007.
• National Reinsurance Corporation (NAIC #34835), has been terminated effective June 18, 2007.
• IMT Insurance Company (Mutual) (NAIC #14257), has changed names to IMT Insurance Company effective January 1, 2007.
• State Auto Property & Casualty Insurance Company (NAIC #25127), redomesticated from South Carolina to Iowa effective February 7, 2007.
• FCCI Insurance Company (NAIC #10178), has been certified and added to the Treasury’s Listing of Approved Sureties effective August 14, 2007.

For a complete listing of all states where these companies are licensed to transact surety business, please refer to the Circular 570 at: http://fms.treas.gov/c570/c570.html and
http://fms.treas.gov/c570/supplements.html

The FMS reminds sureties that the Federal statute, 31 U.S.C. 333(a), prohibits the use of the FMS name, symbol or emblem in a manner “which could reasonably be interpreted . . . as conveying the false impression” that a particular business activity or product is endorsed by FMS. The use of the FMS logo on a surety web site may create the mistaken impression that the FMS favors or endorses the products of one particular surety over the products of other sureties listed on Circular 570. In addition, the FMS has not yet finalized its external linking guidance so the use of links at this time is not authorized.

As an alternative, the FMS states that certified sureties may post information on their web sites using the following model language:

“The (company) maintains a certificate of authority issued by the U.S. Department of the Treasury, Financial Management Service (FMS) to write and reinsure Federal bonds. Confirmation of FMS certification status (listing of the company on Circular 570, published by FMS), authorized per bond underwriting limitation, and other details can be obtained at the following web site: www.fms.treas.gov./c570. This notice, and the listing of the company on Circular 570, does not constitute an endorsement or recommendation by FMS of one company over other sureties listed on Circular 570.”

If you have any questions, contact the Surety Bond Branch at 202-874-6850 or Surety.Bonds@fms.treas.gov.

The 28-page surety supplement is a perfect resource to give to private owners, developers, and contractors to convey the value and importance of bonding in private sector construction. Distribute the supplement at trade shows, business meetings, or other events, or e-mail the PDF to clients.

In addition to an overview of the surety market and Executive Viewpoints, this edition covers such topics as mega construction projects and the owner s role in the claims process.

The surety supplement would not be possible without the commitment and advertising support by the surety executives who also provided the wealth of information used to create this superior tool to benefit the surety industry. Thanks to all who participated!

SIO Adds New CD to Banker Toolbox

SIO has developed a CD especially for bankers and lenders. Surety Bonds: A Guide for Lenders features a one-hour Webinar, Banking and Bonding: How to Mitigate Construction Risk, which SIO developed for the Risk Management Association (RMA). The Webinar features Ed Heine, Payne Financial Group, and Gary Dunbar, Great American Insurance Co.

The CD includes two PowerPoint presentations, Managing the Surety Claims Process and Case in Point: Surety s Involvement Saves Projects, and links to resources such as Contract Surety Bonds: Protecting Your Investment.

Order the CD today, then schedule a meeting with a banker or lender to explain the value of requiring a surety bond as a condition of the construction loan. You also can view the CD online.

The CD is the latest addition to a number of SIO products and articles available especially for bankers and lenders including:

• Surety Bonding in Today s Construction Market (RMA Journal, May 2005)
• Mitigating Real Estate Construction Risk (RMA Journal, November 2005)
• Our Letters Are Not Their Bonds (RMA Journal, February 2006)