This is a real case that was handled by our surety bond experts… a doozie! See what you can make of it.
- This is a Performance Bond request for a multi-million dollar subcontract
- The applicant / principal is a long established company
- They have successfully completed similar sized projects
- The company has a modest net worth, but is on a profitable trend. Ratios are OK.
- Personal financial statements of the stockholders add more net worth to the picture
- The company is owned by a father and son. Son is the primary stockholder.
- We noted their SS numbers are only a few digits apart
- Father has a substantial net worth. Son has a small net worth as indicated on his personal statement.
- The applicant has started the subcontract
- The GC / obligee has a mandatory bond form – very tough. It effectively makes it a forfeiture bond (obligee completes