COVID-19 relief legislation includes funding for state transportation, school construction | Survey: 2021 gains likely in only 3 construction categories | Conn. contractor pays $3.2M, enters monitoring agreement to settle fraud allegations
January 13, 2021
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The federal COVID-19 relief package contains provisions that experts say will benefit the construction industry. Among those provisions are $10 billion for states' departments of transportation as well as $82 billion for education, which will go at least partly toward school construction and renovations.
Only three of 16 construction categories are forecast to show growth this year, according to a hiring and business outlook for the industry. Alternative health care facilities, warehouses, and water and sewer facilities are expected to grow slightly, while declines in other sectors could range from 3% for hospitals to 64% for retail.
Maintaining Surety Credit in Times of Growth and Transition When construction company owners are ready to retire, they will likely sell to someone outside the family. If the company's balance sheet gets turned upside down in the process, the company might not be able to bid on projects that require bonds if the buying firm plans to use debt to achieve fast growth.
In this scenario, problems for the seller can arise if the sale of the company has an earn-out. Learn more
A Connecticut electrical contractor has agreed to pay more than $3.2 million and enter a monitoring agreement to resolve accusations that it violated the federal False Claims Act. Federal officials say the business fraudulently certified certain work as being done by a disadvantaged business enterprise to qualify for DBE credit.
Officials of Guelph, Ontario, are working with a surety to complete a delayed police headquarters project. Subcontractors claim they weren't paid fully for their work, and the bonding company took over the project after the city cited contractual deficiencies in removing the original general contractor in June.
Design-build contractors must have proper documentation to demonstrate that contractual obligations are fulfilled, two attorneys write. One area that contractors need to focus on is how changes sought by the owner can increase costs in terms of time and money, according to the attorneys.
NASBP Blog: Paycheck Protection Program opens again with possibility for second PPP loan
The US Small Business Administration (SBA) and the US Treasury recently announced the reopening of the Paycheck Protection Program (PPP) this week, with first-time loans available starting Jan. 11 and Second Draw loans, loans for those who have already received and used a PPP loan, available beginning today. This NASBP Blog post from Marty McCarthy, Managing Partner of McCarthy & Company, PC and a CPA who serves on the NASBP CPA Advisory Council, discusses eligibility for Second Draw PPP loans. McCarthy notes that, while the terms and conditions are the same as First Draw PPP loans, the eligibility requirements are different. These include having experienced a revenue reduction of 25% or more in 2020 compared to 2019 and having 300 or fewer employees. McCarthy also details exclusions, payroll calculations and documentation requirements. Read the NASBP Blog post, and check the NASBP Coronavirus Resource Page for the latest from the SBA on the PPP. Make sure to read McCarthy's companion piece that addresses first-time PPP borrowers.
Jan. 27 NASBP Virtual Seminar is first in surety industry Spotlight Series
Join us at 2 p.m. Eastern on Wednesday, Jan. 27, for the first in the NASBP Virtual Seminar Spotlight Series. Through panel discussions, moderated by NASBP past presidents, surety industry leaders will share their perspectives on business strategy, culture, future trends, talent management and other topics. "Conversations with Surety Industry Leaders -- Part 1" will feature Rick Ciullo, Chief Operating Officer of The Hartford Bond; Larry Taylor, President of Merchants Bonding Company; and Steve Anderson, Head of Surety North America-NAS and Executive Vice President, Swiss Re. Ed Heine, Executive Vice President and Surety Managing Director of the NASBP member firm PayneWest Insurance, Inc., will moderate the panel. Register for this standalone NASBP Virtual Seminar or register for the NASBP 2021 Virtual Seminar Annual Subscription, the entire set of Virtual Seminars for 2021, which includes access to the complete library of Virtual Seminars. This Virtual Seminar is sponsored by Old Republic Surety. Register and save.
Electronic signatures are focus of NASBP "Let's Get Surety" podcast episode
Insulation made by incorporating mushrooms is among the current innovations in construction materials, along with memory steel, which prestresses concrete as it is heated. Other innovative material trends include modular construction, 3D printing and self-healing concrete.
I wouldn't ask anyone to do anything I wouldn't do myself.
Indra Nooyi, business executive
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.