Senior management has significant experience and expertise in contract surety and construction and engage a more comprehensive and labor intensive approach to reviewing an account than is taken by most surety markets. In addition to reviewing financial data, underwriting will be based on the character of the principals to be bonded as well as their expertise and experience.
The typical risk profile we will look at is a contractor/principal that has excellent performance and completion records. Many bond-worthy contractors are declined because underwriters do not have the luxury of devoting very much time to any one submission. As a mono-line surety, we will take the necessary time to thoroughly understand the contractor and its ability to perform the job.
Also critical to the underwriting process is a comprehensive assessment of the project contract, bid spreads, and schedule of values set forth by the contractor. As will be described below, Expedite Re SA contract surety program requires mandatory Loss control, which will mitigate the loss exposure related to payment bonds. The character-driven underwriting and in depth evaluation of the job contract will drive the loss containment on performance bonds.
In addition to the gathering of data which is part of any submission, underwriting also involves additional steps, which may include but not be limited to:
Personal telephone interviews with the principal to be bonded and in some cases making a personal trip to visit with the principal, their CPA, and to view the actual site or project being bonded
Speaking to owners and prime contractors about prior completed projects as well as other references such as sub-contractors and suppliers Personal credit review
Engaging an independent technical assessment of the scope and pricing of actual work to be performed and bonded
A thorough underwriting submission would include substantially the following documentation:
Underwriting Documentation Mangement Operations
Company Organization Chart
Corporate Business Plan
Continuity Plan
Corporate Life Insurance- Key Man
Key Employment Agreements
Software-Accounting, Estimating, Scheduling, Document Management
Resume for Key Employees
Job Cost Breakdown
Locations/ Concentration of Sites