Nearly 800 contractors, suppliers, service providers and guests attended the Carolina’s Associated General Contractors (CAGC) Summer Summit last month to discuss issues impacting the construction industry throughout the region. The topics discussed at the conference were focused on the building, utility and highway divisions of construction; however, several trends permeate the entire industry and even other industries with a similar workforce and/or risk exposures.
“We were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic. It was as if we were driving along, watching only the speedometer, when in fact we were running out of gas.” – Michael Dell, Founder & CEO of Dell Technologies
It takes a broad skill-set to run a successful construction business and navigate the significant risks inherent in the industry. Not only do you need to know the ins and outs of construction, you must also be skilled at business management and finance. From executing contracts to understanding the bid process to managing resources, not the least of which is cash. The quote above from Michael Dell about cash flow is very timely and applicable for contractors. A large surety company recently listed its “Top 10 Reasons Contractors are at Risk of Failing,” with Insufficient Cash Flow as #4 on the list. Cash flow issues have historically been at the top of similar lists of construction industry risks. The ability to quickly access cash is the universal resource to fix just about any issue that arises.Continue reading
Since Electronic Surety Bonds (ESBs) were launched by the National Multistate Licensing System and Registry (NMLS) in September 2016, many professionals in the mortgage and financial services industries are now required to use ESBs. Thankfully, this process is much more convenient and efficient than traditional paper surety bonds.
With the addition of the Oregon Division of Financial Regulation later this week (April 15, 2017), 22 state agencies across the country will have adopted ESBs. To view the complete list of states that have adopted the ESB process, view the ESB Adoption Map and Table, which also includes a detailed listing of which types of licenses are required to utilize ESBs in each state. Examples of licenses now utilizing the NMLS Electronic Surety Bonds process include:
• Mortgage Brokers/Lenders/Servicers
• Money Transmitters
• Debt Management/Collection Agencies
• Check Cashiers
• Consumer Finance Lenders
In addition to new applicants, existing licensees must convert their paper bonds to ESBs by the conversion deadline listed for each state.