Industry News
Building a Strong Foundation: Year-End Financials and Your 2027 Bond Program
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
With contract amounts increasing, our surety team continues to have more frequent conversations with our clients about the importance of preparing their year-end financials. A company’s financials, their balance sheet and an income statement, are the primary sources of information that a surety uses when establishing a contractor’s bond program. The way this information is presented is very important as it determines the amount of credit that a bond company is willing to extend. There are a few different options for presenting year-end financials, with the two most common being internal financials and CPA reviewed financials.
Contractors: When it Comes Down to Delays and Disputes, Documentation is your Best Friend
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
Every contractor knows that project delays and disputes are just a part of life in the industry. The question is, how does one go about improving their chances of achieving the outcome they desire when this occurs and the answer is, documentation.
Developing a Strategic Business Development Process
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
When your business development strategy aligns with your unique strengths and you are no longer competing solely on price, you have become your clients’ preferred partner because of the value you bring.
The Evolution of Credit-Based Bonding Programs
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
When I first started in the industry, 8+ years ago, there were a handful of surety companies that offered credit based surety programs. They required a one-page application, would do a soft pull on the owners credit, and so long as it was sufficient, they could qualify for up to $400,000 in single and aggregate bonding limits. Since then, the limits in these programs have continued to grow as the market for the credit-based programs has evolved.
The Real Reason Sureties Require Fund Control (And Why It Matters)
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
When a surety company issues a bond, the main goal is simple, to make sure the job gets finished and no one loses money. Even if a company has deep experience and strong finances, that does not always mean project money will be handled the right way. Because of this, a surety may ask for fund control when there is more risk.
From RFI to Payment: Navigating the Full Change Order Lifecycle
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
I recently had the pleasure of interviewing Luke Thompson, Esq. who is uniquely qualified to help us understand the nuances of change orders. Based on our conversation, I’ve put together an overview of what all subcontractors should know about change orders.
Underbillings and How They are Viewed by the Surety
Surety Group Leader Andy Roberts sat down with Marc Henry, Region Vice President for Sompo International and Damian Pintor, underwriter in the Western Region for Sompo International. They shared valuable insight about underbillings in the construction industry and discussed how surety companies handle them.
2026 Legal Updates Reshaping California’s Private Construction Sector
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
California’s private construction industry has entered 2026 with two major legal changes that will significantly impact how contractors and subcontractors manage cash flow, negotiate contracts, and process change order work. Beginning January 1, 2026, California Senate Bill 61 Private works of improvement: retention payments (SB 61) and Senate Bill 440 Private Works Change Order Fair Payment Act (SB 440) took effect, reshaping longstanding practices around retention and change order payments. These laws apply only to new private works contracts signed on or after that date, leaving existing agreements untouched.
Understanding the PLA Grievance Process
Rancho Mesa’s Surety Relationship Executive Anne Wright sits down with Adrianna Lopez, Director of Labor Relations for the Associated General Contractors (AGC) to discuss the grievance process for project labor agreements.
A Year-End Meeting with Your Surety and Agent Could Make or Break Your 2026
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
As 2025 comes to a close, companies are focused on finalizing their year-end financials. For contractors, it is important to have a surety agent who will coordinate a meeting with the surety company early in 2026, once the year-end financials are completed. This meeting is important for several reasons, including reviewing the previous year's financial performance, looking at the outlook for the coming year, understanding current bonding capacity limits, and discussing any potential issues on the horizon.
Elevating Your Surety Program with Reviewed Financials
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
Over the last several years, contractors have been challenged to manage rising costs, especially those companies operating in the steel and concrete industries. These rising costs in the private sector can be mitigated through escalation clauses and other price adjustment features which offers some level of protection from inflation; however, in the public sector where bonds are necessary, fixed price contracts are a more common practice which creates additional pressure on surety underwriters in their evaluation of risk.
Exit Strategies for Construction Companies
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
For years, I’ve heard various clients’ explain their plans to ensure both retirement and business continuity as their key people plan to exit the workforce. Depending on the company, some plans have gone well, and others not quite as well. And, some plans are ever evolving. Typically, this process will take a lot of time and thought, and rethinking in order to make sure it is done right.
Private Equity and Bonded Contractors: Building a Foundation through Communication
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
Private equity firms have been actively purchasing construction companies. For the firms that are acquiring the construction companies that perform bonded work, it is highly important that they know there is a stark difference between how surety companies underwrite standard construction bond programs and how they underwrite private equity-owned construction bond programs. Matt Gaynor discussed this in detail in a previous article. Because of these differences, it important that the firms involve their agent and surety company early in the acquisition/due diligence process. This is to ensure the firms know the specific information that the surety company will want to see in order to advise regarding the impact the acquisition will have on the bond program.
Maintaining Strong Banking Relationships Supports Surety Bonding Capacity
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
Having a good relationship with your bank can pay dividends for your business when obtaining bonds from your surety. Managing that line of credit appropriately can be a resource of available working capital which surety carriers likes to see, but when it is not utilized as expected by your bank, it could become a substantial detriment to your operations and ability to secure bonds.
The History, Importance and Value of Surety Bond Requirements for Contractors
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
Surety bonds, in the world of construction, guarantee that the obligations of the contract will be properly completed and all costs paid. The concept of surety – which is a guarantee of one party for another’ party’s debts or obligations – literally goes back to ancient times.
Liquidated Damages: What Every Contractor Needs to Know
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
For a surety agent and underwriter, there are specific provisions within a contract that are important. One of the more critical provisions, references Liquidated Damages (LD). Often overlooked by contractors, LDs represent important elements of the contract that can cause significant financial losses on a project. So what are LDs; why are they important; and, what can contractors do to make sure the LDs in their contracts are fair?
A Contractor’s Best Practice Approach to Price Escalations in the Current Market
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
Historically, market conditions and economic factors have contributed to both contractors and subcontractors having to deal with price escalations. Today, the uncertainties of how the tariffs will impact the construction industry is causing many to rethink their pricing models and contracts.
Forty Year of Surety Bonding: A Look Back
Rancho Mesa President Dave Garcia and Matt Gaynor, Director of Surety look back on Matt’s carrier in the surety business and how it has evolved over the last 40 years, as he prepares for his upcoming retirement.
Shaping the Industry's Future with SDSU’s Construction Management Program
Surety Account Executive Andy Roberts interviews Thais Alves, Chair of the Construction Engineering and Management Program at SDSU, about her journey to academia, the growth of SDSU's construction management program, and the role industry support plays in shaping future leaders in construction.
Contractors’ Guide to Navigating Cybersecurity Maturity Model Certification
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
In true government fashion, the Cybersecurity Maturity Model Certification requirement, more commonly referred to as CMMC, is a mouthful! While most companies are familiar with or are working on compliance with this requirement by now, we felt it was appropriate to share the history of this certification with our audience.