My understanding this was originally shot down when it was to be part of the NY Property Insurance Underwriters Association program. I felt the reason it was thought to be a terrible idea was well warranted! The whole concept of bonding was to provide the capital for an entity that had an established credit history and a trackable work flow. It seems that once again NY will be bailing out those that have the poor credit for self reasons, and poor work history, but yet want to reap the rewards of the contractors that “played by the rules” to get where they are! And we wonder why we are called the “welfare state”!!
When the banking industry participates in sub-prime lending practices they are accused of being criminally irresponsible, when the government does it in the bond market they are compassionate enablers. I don’t get it.
I’m surprised to learn this program has been implemented – I also thought it had been shot down for valid reasons. So, let’s mark our calendars – shutting it down after losses will be difficult due to political pressure so I give it three years.
There are Sureties and government programs already in place for this segment of the market. What we need are fair contracts and better laws as it relates to contractors. With more level contracts, contract terms and better law more contractors will qualify for bonding. The bar is set high for so many NY counties and for doing work with many owners (both public and private), but for the right reasons. Surety is an earned privilege not a right. When you ask a company to guarantee your work and your bills as it relates to a project you better be a worthy risk.
In addition what bond companies bought in to this program? I represent over 12 companies in the NYC Metro marketplace and none of my underwriters are aware of this arrangement between their Surety, the State, contractors and owners.
My understanding this was originally shot down when it was to be part of the NY Property Insurance Underwriters Association program. I felt the reason it was thought to be a terrible idea was well warranted! The whole concept of bonding was to provide the capital for an entity that had an established credit history and a trackable work flow. It seems that once again NY will be bailing out those that have the poor credit for self reasons, and poor work history, but yet want to reap the rewards of the contractors that “played by the rules” to get where they are! And we wonder why we are called the “welfare state”!!
When the banking industry participates in sub-prime lending practices they are accused of being criminally irresponsible, when the government does it in the bond market they are compassionate enablers. I don’t get it.
I’m surprised to learn this program has been implemented – I also thought it had been shot down for valid reasons. So, let’s mark our calendars – shutting it down after losses will be difficult due to political pressure so I give it three years.
There are Sureties and government programs already in place for this segment of the market. What we need are fair contracts and better laws as it relates to contractors. With more level contracts, contract terms and better law more contractors will qualify for bonding. The bar is set high for so many NY counties and for doing work with many owners (both public and private), but for the right reasons. Surety is an earned privilege not a right. When you ask a company to guarantee your work and your bills as it relates to a project you better be a worthy risk.
In addition what bond companies bought in to this program? I represent over 12 companies in the NYC Metro marketplace and none of my underwriters are aware of this arrangement between their Surety, the State, contractors and owners.