Bid bonds, performance bonds and payment bonds are highly useful in the construction industry and sometimes required, but they're not insurance, cautions Reed Smith's Simon Adams. He describes each type of bond and, while acknowledging that cost should be a consideration, advises that the best option may be a "payment performance bond linked where appropriate to a sub-guard insurance policy."
The construction industry has a terrible record with payments, posing a financial risk that is often underestimated, particularly as it affects the cash a firm needs to sustain operations. Zlien's Peter Menge offers several tips on how to avoid the worst and speed payments, including sending notices even when not required and automating the waiver exchange process.
More than half of construction companies participating in the 38th Annual Construction & Design Survey predict "slow but steady growth" in the health care construction sector. The political debate over health care, however, creates some uncertainty in the forecast, as does the increasing cost of construction labor.
Although investment in infrastructure was a cornerstone of President Donald Trump's campaign, there is a dearth of details about it in the budget proposal just released. Instead, the budget mentions that infrastructure experts will "evaluate investment options along with commonsense regulatory, administrative, organizational, and policy changes to encourage investment and speed project delivery" and ensure "that taxpayer dollars are expended for the highest return projects ... ."
The Historic and Design Review Commission in San Antonio recently approved several projects, including construction of the $142 million Frost Tower and a $122 million renovation of two existing towers. The 23-story Frost building will be the first office tower built in the city's downtown since 1989.
Two New York City officials argue that a design-build proposal at the state Legislature could shave time and cut costs of construction projects in the city. The proposal includes mandating project labor agreements and a 30% set-aside for contracts for minority- and women-owned businesses.
Political risk is top of mind for firms interested in pursuing a public-private partnership (P3) in the United States and Canada. Panelists will discuss the impact of the regulatory and political environment at the state and provincial level while reviewing Aon's P3-Pro™, a diagnostic tool that helps identify states and provinces that are most likely to support a successful P3 procurement. Join experts Wednesday, March 29 at 2 p.m. ET as we discuss political and related risks associated with pursuing P3 projects. Register now.
Aon Construction Services Group is proud to release our "Construction and Surety Market Update 2017." This year's market update covers the gradual improvement in construction spend and assesses the continued problem contractors and construction companies face with finding high-quality talent across the industry. Additionally, we discuss how construction activity is expecting to be modestly positive, without a dramatic swing in either direction in 2017. Download the report.
Either life entails courage, or it ceases to be life.
E.M. Forster, writer
I have accepted fear as a part of life, specifically the fear of change, the fear of the unknown. I have gone ahead despite the pounding in the heart that says: Turn back.
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About Aon Construction Services Group
Aon's Construction Services Group is the preeminent provider of risk and human resources solutions to general and specialty contractors, project owners, and industry stakeholders. As the segment leader, Aon provides an unparalleled platform to serve the risk management needs of global contractors, an expansive collection of offices to support service delivery for specialty firms and large infrastructure projects, and the risk management industry's leading global network, delivered through collaborative colleagues who specialize in risk management for construction activities.
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