Contract Surety

Recession? Work Smart



The last few years have certainly taught us that agility is not just a buzz word. Who really knows what the future holds, but, with the “r word” in the air so much these days,  construction company owners are thinking about how to be prepared. Experts point out that some business practices make good sense—no matter what.


Cash On Hand

Though obvious, it’s not always easy to keep cash reserves on hand. Still, it’s best practiceto have enough reserves to cover your operating expenses and overhead for a few months to supplement any shortfall.” Work toward strengthening your cash situation by cutting the fat from current operations and focusing harder on your strengths. Experts at Construct Connect offer these guiding questions to help you assess your operations:


Take a good hard look at your current operations. Are you overextending by taking on too many projects at once? Do you have equipment sitting idle for months at a time? Do you have employees that arent pulling their weight? Are you spending money on things that arent directly related to your strategic growth? If you answered yes to any of these questions, now is the time to cut the fat and get your company into a lean, mean, recession-fighting machine.


What sets your company apart from your competition? Is it the quality of work, your ability to deliver projects on time and within budget, or your expertise in a niche market? Are there certain types of projects or service areas that are more profitable for your company than others? If work starts to dry up, youll want to lean into the type of work that you excel at in order to weather the storm.


Get An Edge

Of course having a surety line of credit—in writing—will also set your company apart from the competition. Get that, and a whole lot more with the The Partnership Account®  from Colonial Surety. Learn more and pre-qualify right here.


With The Partnership Account® services, you’ll have your own private digital dashboard, providing you with a real time window into your day to day bottom line. Take the guess work out of understanding your limits and possibilities as you plot your way to growth, strategically. For example, from your own private and secure owner’s dashboard, you’ll find your underwriting review, along with financial trends, bid spreads, credit scores and more. With all this useful data at your fingertips—and Colonial as your partner, you’ll have the ability to better plot your bidding strategy and increase your profits.  Get started today: Pre-Qualify and Get Free Scores Here.


Insights from Underwriting

Colonial Surety’s Underwriter, Philp Shepard, points out a practice that stymies business growth in many construction companies: taking too big a distribution from the company on the heel’s of strong earnings. Though this might seem like a good idea at tax time, Shepard explains, “It weakens the company’s cash position—and ultimately limits the capacity to secure bid bonds for larger projects.”  Banking experts agree, observing: “The economy poses significant challenges to the construction industry, as firms navigate the more recent impact of inflation, supply chain problems, and workforce disruption…Leaders are taking strong steps to navigate these challenges, and those that remain focused on investing in improvements and efficiencies will be positioned better for the future no matter the direction of the economy.”


As you think forward, Colonial Surety is here to help your construction company take control of the future with the surety line of credit and value added business services that come with The Partnership Account for Contractors®. Once qualified, you will use our powers of attorney to issue your own bid bond—and you can do so right up to the last moment you need it. With us, you’ll also have your own private digital dashboard, providing you with a day to day snapshot of your single and aggregate limits, as well as your current and available bond capacity. As your work in progress decreases, you can update your work on hand—increasing your aggregate so you can go ahead and move that next bid ahead. Afterall, you’re in control.How’s that for efficient—and edgy too? Let’s get you growing today: The Partnership Account®.



Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.