wrightdfa
This is a real case that was handled by our surety bond experts... a doozie! See what you can make of it.
The facts:
This is a Performance Bond request for a multi-million dollar subcontract
The applicant / principal is a long established company
They have successfully completed similar sized projects
The company has a modest net worth, but is on a profitable trend. Ratios are OK.
Personal financial statements of the stockholders add more net worth to the picture
The company is owned by a father and son. Son is the primary stockholder.
We noted their SS numbers are only a few digits apart
Father has a substantial net worth. Son has a small net worth as indicated on his personal statement.
The applicant has started the subcontract
The GC / obligee has a mandatory bond form - very tough. It effectively makes it a forfeiture bond (obligee completes the job and sends you the bill.)
Father has a living trust
Son also indicated he has a trust
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