Apr
01
Unions Protect Members with Wage & Welfare Bonds

Unions want to make sure companies uphold union contracts. As a precaution, unions require any company that employs their members to have a surety bond in place. This bond makes sure the employer handles dues properly, pays and administers benefits, and in general honors all the terms of the union contract.

These bonds are required at the local level. Such a requirement prevents the national organization from collecting when a local union contract infraction takes place. This makes the bond unique in the fact that a local union shop will have its own formula to determine surety bond amounts. The local union will also have its own bond forms with specific requirements.

Wage and Welfare bonds are a type of financial guarantee bond. Such a bond isn’t easy to write with most surety companies. But, wage and welfare bonds are one of the few financial guarantee bonds that some sureties will consider. Our surety providers have the underwriting authority to place the bond regardless of a company’s credit or financial strength. We have the ability to quickly approve applications at very reasonable rates.

Surety Support Services provides employers with Wage & Welfare bonds so they can meet the needs of their unionized employees. Contact us today for more information . Suretyss.com.

Mar
30
Working Together- Contractors and Surety Agents

Contractors large and small benefit greatly when having a group of advisors that specialize in bid situations. Most advisory groups consist of CPAs, commercial bankers, lawyers, insurance agents, and surety professionals. These advisors provide years of experience in corporate organization, financial planning, and successful bonding strategies.

Surety agents are key advisors in the entire process. They understand what is expected by both the organization requiring the bond and the surety underwriters. This understanding allows your agent to help in more ways than you may expect.

A Surety Professional:

  • Builds a long-term strategy to increase surety capacity to the next level.
  • Leverages the company’s past success and profitability to help secure bids and compete for larger, more profitable jobs.
  • Guides companies in continued bidding efforts to retain and grow the company’s working capital and net worth.
  • Puts forth a financial presentation that shows successful management of bonded work.
  • Works with company’s CPA in generating construction accounting financial statements in a form and format preferred by the surety underwriters.

Your dedicated surety agent will work hand in hand with your staff as you conclude your present work and turn your focus towards future jobs. If your interested in winning the next level contract, give us a call at 866-385-7760.

Feb
20
Surety Professionals Keep an Eye on the Construction Industry

Infrastructure projects are highly sought by contractors nationwide. Industry forecasts are valuable tools for business planning and income projections. At Surety Support Services, we prepare our agents to meet the needs of their construction clients.  This month we take a look at two industry reports that give great insight into 2019 construction opportunities.

Summary of Dodge Analytics 2019 Construction Forecast (Oct. 25, 2018):

  • In general, the construction industry should see a modest 3% growth.
  • The source of most government spending will be at the local level due to municipal bond initiatives.  
  • Institutional building in 2018 showed a 1% gain, but 2019 should advance to a 3% gain.
  • Educational building should continue growing in 2019
  • Healthcare projects actually retreated in 2018 but it is expected they will rebound and show modest growth in 2019.
  • Transportation projects are stagnant, holding at the 2017 and 2018 levels.


Access the full report at: https://www.construction.com/news/new-construction-starts-2019-steady-with-2018-dodge-data-analytics-oct-2018

Economists’ State of the Construction Industry 2019- Summary (Feb. 11, 2019)

  • Bridge and highway construction rebounded in 2018 and will see a slight increase for 2019.  
  • States are allowed to take up to four years to obligate federal funds. As a result, 2018 federal allocations to states will keep the construction pipeline flowing in 2019.
  • Federal allocations combined with state funds raised through new fuel taxes and tollways will mean a modest 1.5% growth in bridge and highway construction.
  • Commercial building is expected to see modest growth with exact projections undefined.

Access the full report at: https://www.forconstructionpros.com/business/article/21041305/special-report-state-of-the-construction-industry-2019

Get a Bond Quote at Suretyss.com.

Jun
04
How the New Tax Laws Benefit the Construction Industry

The Tax Cuts and Jobs Act was signed on December 22, 2017 but the impacts are just now being seen and felt by business owners, especially in the construction industry. Below we have highlighted some of the tax law changes that will be of great interest to contractors and other construction professionals.

Bonus Depreciation

The bonus deprecation rule accelerates the deduction for capital improvements and business expansion. A company owner can immediately deduct short-lived capital investments, but only for the year it is placed in service.

Section 179 deductions

Section 179 deductions also allow business owner to deduct total costs of capital improvements and business investments immediately rather than over a period of years. Again, it must be only for the year placed into service. This incents business owners to invest in their companies, buying new equipment, upgrading software and get the maximum tax deduction as quickly as possible.
This rule is more restrictive than the bonus depreciation. There is limit based on the taxpayer’s income and it has a maximum deduction. However, the maximum deduction is increased from $500,000 to $1,000,000 under the new rule.

Qualified Improvement Property

This tax rule is specifically for the construction industry. It is a narrow rule that allows for accelerated depreciation for improvement to a non-residential building, under certain circumstances. Excluded are changes to “internal structural framework”, building expansion, elevators and escalators. Other than these restrictions there is great flexibility when defining qualified improvements.
For a more in-depth look at these new tax benefits, we invite you to click on the link below.

https://www.jdsupra.com/legalnews/maximizing-profits-how-the-tax-cuts-and-77033/

Note: This blog is informational only and should not be construed as tax advice.

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