Industry News
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.
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.
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.
Beyond a Single Bond: How We Help Contractors Stay Ahead of Their Surety Needs
Author, Matt Gaynor,Director of Surety, Rancho Mesa Insurance Services, Inc.
We recently issued a very large bond for one of our contractor clients which prompted a discussion during the underwriting process about potentially moving their account to a surety carrier with a larger capacity. However, after enjoying a seven-year relationship with the current bond company and receiving an early indication that they could support the larger bond request, this provided us with an initial understanding that we might be okay staying with the current carrier.
Utilizing Your CPA's Expertise with Nick Balaity
Andy Roberts, Rancho Mesa's Surety Account Executive, is joined by Nick Balaity, CPA with Aldrich CPA + Advisors, to discuss the tax law outlook for 2025 and offer insight on contractors’ business decisions in the coming year.
Exploring the Current Commercial Surety Climate
Author, Andy Roberts, Surety Account Executive, Rancho Mesa Insurance Services, Inc.
Surety Account Executive Andy Roberts sat down and interviewed Miggs Borromeo, Commercial Surety Underwriter for Merchants Bonding, and discussed the current climate of the commercial surety world in Southern California. They also covered the bonding trends most commonly seen today, and the programs that Merchants Bonding Company offers.
Building a Productive Surety Relationship
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
Having represented contractors and developers of all types and sizes for many years, I have plenty of examples of what works best for clients to maintain a level of surety support that helps them meet their growth goals and objectives: updated financials and proper communication.
Transitioning from a Credit-Based to a Standard Surety Program
Author, Andy Roberts, Account Executive, Rancho Mesa Insurance Services, Inc.
When sureties began offering credit-based programs, there were only a few companies who would offer this type of program and the limits were low, most often around $250,000 for a single project and aggregate.
Subcontractors: The Prime Contract and Its Impact On Your Rights and Responsibilities
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
Reviewing contracts is not everyone’s favorite thing to do. But, I would like to share some quick thoughts on why asking for and reviewing the prime contract (before you sign your subcontract, ideally) can be important for subcontractors. This can help strengthen your position if certain conflicts arise.
Surety Bonding: Understanding the Client-Broker-Carrier Relationship
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
People from outside the surety bond industry will sometimes ask if we work for 1) the carrier (bond company) or 2) the contractor client. This is an easy one. While we are approved to issue bonds by the 20+ carriers we are appointed with, make no mistake that we work 100% for our clients.
Navigating Contractor Challenges in 2024: Insights from the Surety Association of San Diego
Author, Andy Roberts, Surety Account Executive, Rancho Mesa Insurance Services, Inc.
In a recent special StudioOne™ Podcast episode, I’m joined by my three fellow board members of the Surety Association of San Diego as we explore some of the biggest challenges facing contractors in 2024 and beyond.
Getting to Know Our Trade Associations – Meet Andy Berg, Executive Director of NECA San Diego
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
As we have shared with our clients and viewers in the past, Rancho Mesa finds a tremendous amount of value in memberships of various trade associations. Becoming involved in these associations by attending events, and participating in committees, ultimately at board level, has allowed for a deeper understanding of the construction industry that we bond. I have found value in following legislation changes that affects the industry, as well as learning about the issues and processes available for contractors to run safer jobs, be more competitive in the industry, and manage contracts and financial reporting. It has made me better at what I do as a surety agent.
Performance Bonds for Private Equity Contractors
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
We have entertained several recent submissions from our construction division prospects looking for bonding support of their companies that are majority owned by a private equity firm. The traditional surety market will push back on private equity submissions pointing out the goodwill and large amount of debt listed on the balance sheet. Throw in the limited indemnity package offered in support of the bond program and we have created a perfect storm for the account to be declined without any actual underwriting taking place. But there is hope!
Unlocking Working Capital in Construction: Options for Reducing or Releasing Retention
Author, Andy Roberts, Surety Account Executive, Rancho Mesa Insurance Services, Inc.
Retention is a very common practice within the construction industry that typically involves 5-10% of each payment to the subcontractor being withheld until the project has been completed. The purpose behind this is simple, it is designed to make sure that subcontractors satisfy their contractual agreements before they receive their last payment for the work they have done. While this practice serves a real purpose, it can cause significant issues for subcontractors if the payments are delayed.
Anne Wright Explores Philadelphia Surety with Mike Hall
Rancho Mesa’s Surety Relationship Executive Anne Wright sat down with Mike Hall, Vice President of Surety for Philadelphia Insurance Company to explore what makes Philadelphia Surety unique and the programs they offer businesses placed with them.