Construction Executive published an article by Assurance Partners Robert Mercado and William Clark, about maximizing contractor capital for increased bonding capacity.
Construction Executive
By Robert Mercado, Partner, Assurance Services & William Clark, Partner, Assurance Services
Excerpt:
Surety credit normally ranges from 10 to 20 times the lesser of the adjusted working capital or equity of the contractor. To maximize surety credit, it is imperative to identify the items that affect he calculation.