Surety Bonds

Construction Forecast: Resilience



Industry economists see a “path to normalcy” emerging, despite continued challenges fighting the spread of COVID-19, as well as supply chain disruptions and labor shortages. A spectacular second half of 2021? That’s in the forecast too.

 Optimism In The Air?


Crystal ball? Data? A little of both? What wins do you predict lie ahead for your construction business? According to Construction Dive, some insiders are very optimistic as they look ahead:


“I find it remarkable that so much normalcy has returned to the construction industry,” said Anirban Basu, chief economist for Associated Builders and Contractors….Basu expects high raw material prices to last for a bit longer, prices would eventually come down. Overall, Basu had a sunny outlook for the construction industry. He predicted that the second half of 2021 would be “spectacular” for economic growth in the country and that demand for construction would get a boost from stimulus spending by the federal government. “The economy is set to bounce back handsomely,” Basu said.


Still craning your neck for talent? You are not alone. Expect the demand and competition for labor to continue, according to Basu, who also predicts: Construction companies will soon be busier than ever as evidenced by the Architecture Billings Index, which tracks how busy architecture firms are.


Time to power up at your firm? Let Colonial Surety help you rev the engines. We are preparing construction companies across the country for wins,  making it easier—and more confidential than ever—to obtain, manage and monitor needed bid, performance and payment bonds. Contractors who complete a simple qualifying app for Colonial’s surety line of credit even receive, for free, Dun & Bradstreet scores. Pre-qualify and Receive Free Scores Here!  Then, once approved for The Partnership Account®  with Colonial, you’ll:

  • Use your private Owners Dashboard® for a personal window into your underwriting profile. Review the statistical analysis of your financial statements and free Dun and Bradstreet scores, profitability, and more.


  • Access a powerful online surety management system to issue bid bonds, order performance, and payment bonds, update work in progress, check your current and aggregate limits, view open and closed bid and performance bonds, and more.


  • Clearly see your bonding limits, and always have direct access to our underwriter if you need the excess capacity to bid on a job.


  • Protect the confidentiality of your bids—after all, no one’s in the middle when you do it yourself, right?


Let’s Do This: The Partnership Account®

 Material Costs+Economics 101=?

Building materials, have hit historically high levels this past year. Though some prices, like softwood lumber have started to drop, inflation is liking to keep materials costs high. However, according to Basu, the market should eventually even out, since “the cure for high process is high prices.” What’s that mean? At least in theory, high prices and demand for materials will result in suppliers increasing productivity and capacity—creating more materials—and driving down costs. Here’s hoping, right?

This is for sure: there are certainly signs of more building ahead popping up all around the country. For example, Illinois has signed a  $45 billion capital plan, allocating funds for roads, bridges, universities and other state facilities over the next six years. Suburbs are booming. Everyone is in search of speedy train lines and the demand for life sciences buildings is going strong. Are you on the move—or trying to get moving with your construction business? Either way—Colonial Surety’s ready to give you a boost. Come on today: The Partnership Account®

 Colonial is built on reliability, affordability and dependability. Founded in 1930, we have proven long-term financial stability; we’re licensed in every single state in the U.S.; we are listed by the U.S. Treasury as an approved surety; and we’re rated “A” Excellent by A.M. Best – an accolade of which we are extremely proud. Let’s Partner!