Despite Record Spending On Public Projects, Contractors Still Struggle

Public construction projects legally require a contractor to post a Performance and Payment Surety Bond, which is a barrier to many contractors seeking to win public projects. A bond is a tool used to protect taxpayer dollars from the contractor’s mishandling of project funds, or project failure. Between contractors who are new to public work and those whose financial integrity is in question, there are a lot of contractors who are struggling to secure the necessary bond programs needed to operate their companies. However, there are solutions designed to help contractors obtain bonds and win projects. Tools like Funds Control are a perfect solution to protecting against the greatest risk faced during construction, while still being able to use the most qualified contractor for the job. Besides the obvious protection for the surety or the bank, the contractor in Funds Control can continue to grow their business, and secure their future and hopefully outgrow the need for Funds Control. “In this economy, the lack of cash flow causes job borrow, which ultimately can lead to project loss. This is the biggest risk surety companies and public entities face,” said Kevin Deasy, CEO of Dayhill Group.