SuretyOne™

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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?

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.

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.

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.

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.

Rancho Mesa’s Surety Relationship Executive Anne Wright and Pam Scholefield of Scholefield Law in San Diego, discuss what affects subcontractors and prime contractors when changes occur in their contract.

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.

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.

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.

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.

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. 

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.

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.

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!