Industry News
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.
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.
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.
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.
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.