Construction is a risky business and surety bonding as a condition of the construction loan is the most effective way for lenders to mitigate risk of contractor failure. In an ongoing effort with the Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP), Merchants Bonding CompanyTM hosted central Iowa commercial construction lenders for a learning event on Thursday, June 15.
The event sought to provide insight for commercial construction lenders into the benefits of surety to lenders. The program, presented by President Larry Taylor, VP Contract Underwriting Josh Penwell, Regional VP Contract Underwriting Jason Dettbarn and VP Claims Manager Steve Dorenkamp, covered a brief Merchants history, the basics of bonding, the benefits of surety and covered a couple of Claims case studies.
Check out Robert Duke's, General Counsel for the SFAA, thoughts on how to mitigate risk of loss in construction lending here.