Construction Today - May 2017 - 43
knowledge that they would not get from
their insurance agent."
The company works with all levels of
contractors, including those that are using
bonds for the first time and large firms that
need assistance in tax planning or presenting to the bond company to maximize their
surety credit. "Each stage is a whole different mindset," Vega explains. "The beginning
is about getting credit-based underwriting.
With decent credit and no prior bankruptcy
or liens, it's relatively easy to get bonding
up to $1 million with internally prepared
financial statements and copies of bank
statements - both business and personal."
Entry-level contractors first need to
establish bonding and partner with a good
CPA and banker to ensure their internal accounting system is up to par. This allows C&D
Bonding to help them get to the next level.
Middle market contractors require a more
thorough presentation and review of their
financials while larger firms require audited
financial statements. "We try to understand
our clients and what they want to do so we
can map out how to get them to the next
level," Vega says.
Contractors and developers
come to C&D Bonding to
maximize their surety credit.
C&D Bonding continuously works to
maintain its relationships with the surety
bond companies. "We get together with
underwriters on a business level regularly
to maintain the ongoing relationship and
discuss current as well as future developments in the industry," Vega says. "I think
it's our expertise and ability to be what we
consider a strong broker that sets us apart.
We aren't afraid to ask [our clients] the
tough questions in front of the underwriters
and the underwriters really like that.
"Surety companies gravitate to us and this
company because we understand our clientele better than others who don't ask those
tough questions and are basically 'yes' men,"
he continues. "We get a lot of respect from
the surety companies we do business with
because of that. In our world, it's imperative
that we tell them good news, but if there's
bad news we have to tell them that too."
Vega says he learned early on in his
career that hiding things or hoping the
bad will go away gets you nowhere in the
surety bond business. "It will hinder your
reputation in the business and if you lose
your reputation you might as well be doing
something different," he adds.
An understanding of the marketplace is
mandatory in the surety bond business and
it is how C&D Bonding is able to provide
expert advice to its clients, Vega says. "There
are questions about the job and every single
project has its own identity, owners, inspec-
MAY 2017 CONSTRUCTION-TODAY.COM