What is General Liability Insurance?

Markup in the construction industry refers to the percentage increase added to the actual costs of construction projects to determine the selling price. The markup covers overhead expenses, such as administrative costs, and ensures the contractor makes a profit from the project. The percentage can vary greatly based on factors like the complexity of the project, competition in the local market, and the contractor's reputation and experience. Careful consideration is needed when deciding the markup as too high can make a contractor's bid uncompetitive, while too low may not cover all expenses or allow for a reasonable profit margin. A good understanding of the project, accurate cost estimations, and market research are crucial for determining an appropriate markup.

A surety in construction is a company that provides financial guarantees, typically in the form of bonds, to ensure that contractors fulfill their contractual obligations. The surety acts as a third-party guarantor, promising to step in and complete the work or compensate for damages if the contractor fails to meet their commitments.

Sureties issue various types of construction bonds, including bid bonds, performance bonds, and payment bonds. These bonds protect project owners from financial loss and give them confidence that contractors can deliver on their promises. To obtain bonding, contractors must demonstrate financial stability, technical expertise, and a track record of successful project completion.

For subcontractors, working with bonded general contractors provides payment protection, but maintaining your own bonding capacity is equally important for winning larger projects. Sureties evaluate contractors based on several factors, including financial health, project experience, and accounts receivable aging. Since poor A/R management can hurt your bonding capacity and disqualify you from major projects, keeping payments flowing quickly becomes critical for more than just cash flow.

Siteline helps subcontractors maintain healthier A/R aging by streamlining billing processes, providing visibility into payment statuses, and creating automated reminders to stay on top of collections. This all positively impact bonding evaluations and keep more opportunities within reach. Learn more about Siteline.

Software as a Service (SaaS) in the context of the construction industry is a key model of cloud computing. It allows construction firms to access software over the internet on a subscription basis. Examples of SaaS tools in construction include project management applications, design software, and collaboration tools. The biggest advantage for the construction industry is that SaaS eliminates the need for hardware acquisition, software licensing, and complex installations. It enables real-time data sharing, enhancing collaboration among teams located in different locations of the world. Users can access services from any internet-enabled device, offering mobility and flexibility. Investment into maintenance and upgrade is also reduced as the SaaS provider takes care of these. Thus, SaaS plays a vital role in streamlining construction operations by making software more accessible and affordable.