May 11, 2019
Construction Executive published an article by 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:
Under Generally Accepted Accounting Principles (GAAP) in the United States, working capital is the difference between the contractor’s current assets and current liabilities. For surety credit purposes, adjustments are made to the GAAP working capital to determine the adjusted working capital. The surety will typically calculate surety credit based on the contractor’s year-end audited or reviewed financial statements.
