What Are Performance Bonds?

Performance Bond

Performance Bond

The performance bond can be described as a bond type that ensures that a bonded contractor is obliged to perform their obligations in the contract in line with the terms and the conditions stated in the contract. Performance bonds generally will be 50% of the amount stated in the contract, but sometimes can be 100% related to the contract-amount. It is important to know that surety will never be liable for more than the amount that is totalled on the bond.

Benefits Of A Performance Bond

This contract offers an owner or owners of a property of building more than just cash in order to rectify issues that have been created by default. A LOC (Letter of Credit) offers the owner an amount of cash to rectify issues that were caused by a default related to the contractor, but this does not mean the project will be completed. The performance bond offer owners the peace-of-mind that regardless of any defaults caused by a contractor, the owner will have the project completed that will be in agreement with the stated terms along with the conditions in the “original” contract.

This Contract Responds To The Very First Dollar

This performance bond is in place to offer complete protection to an owner from the very first dollar lost. The owner will not have to take on the responsibilities for co-payments or deductibles.

Provides Adequate Protection

The LOC’s generally only cover around 10 to 25% of the total contract amount that usually means a drastic shortfall in funds. This amount is typically 40% related to the price of the contract. This leaves an owner in a vulnerable and often very difficult position. The owner usually will not have these funds in order to cover such a shortfall and they will probably need to locate another contractor to carry on with their project.

Non-intrusive Protection

Certified cheques and LOC’s ties up the cash reserves and borrowing line for contractors and denies them any access to money, particularly in a time that is related to financial stress. Unluckily, by asking for this liquid security associated with this nature, owners can unintentionally bring on an issue that they may be wishing to protect themselves from.

Service Contracts And Performance Bonds

Sureties frequently receive a request from clients to issue a bond for a contract that involves providing long term services like snow removal, recycling and waste collection, that can be extended to a 5 years or even more. The growing trends related to these longer terms for maintenance and service contracts encouraged the surety industries to create multi-year payment and performance bonds that offer renewable features. Several agencies and governments around the U.S have now adopted these bond forms as a standard type of security requirement when it comes to the longer term types of service contracts.

The multi-year bonds are not just for the longer term types of service contracts. The construction contractors typically are also asked to offer extended types of warranty protection for defective materials or workmanship.

Implementing Construction Invoice Factoring

Construction Invoice Factoring

Construction Invoice Factoring

Buying Construction Invoice Factoring

When you need to be sure that you are able to pay your contractors quickly and conveniently, you would do well to touch base to a third party construction invoice factoring business. A lot of company who supply contractors do this and are all the better for it. If this is what you need, there are plenty of factoring companies that you can do business with. If this is what you need, read on and enjoy some of these benefits of hiring an invoice factoring company, in order to give yourself the best shot possible at paying contractors.

#1: Understand What Construction Invoice Factoring Involves

When you want to be sure that you are making the most of this hire, you will need to know exactly what a factoring company provides. These companies buy invoices and then front the money to pay the contractors on time. This gives you more flexibility and allows you to use their operating budget in ways that probably never have.

#2: Learn How This Can Streamline Your Money

When you have the opportunity to pay contractors on time without coming out of your own budget, you can then streamline your money and use it in new and different ways. For example, you might be able to purchase the equipment that you have been putting off because the company was not as liquid as you would like it to be. This is an excellent way that you can go about this strategy and use it to the absolute best of your ability.

#3: Strategize And Use It To Your Advantage

When you use this aspect to your advantage, you will best be able to propel your company forward. This is why a number of factoring companies offer their services and why it can be so valuable. You not only free up money, you give yourself the ability to make sound decisions on your own terms. This can be the crossroads between moving forward as a company and falling behind.

#4: Find The Help Of An Invoice Factoring Business That Will Look Out For You

When you need to be sure that you are able to get the help and service that you need from these companies, you should shop amongst the many different factoring companies in your area. These companies will assist you with any help that you require and will be an excellent advocate for you. By getting in touch with these companies, you will understand exactly how they are able to assist you and will get a great idea about how they will incorporate their services for your particular business. This will allow you to never worry about late payments and you will continuously build a solid rapport with the contractors that you hire. This alone makes their services well worth the while, so give yourself the opportunity to receive it by touching base with one of these companies today.

What You Should Know About The EB-5 Investor Visa

investorsIn a few short words, the EB-5 Investor Visa is a type of visa issued by the United States for people who invest at least $1 million, or $500,000 in a high-unemployment area, to create or protect at least ten jobs for Americans.

It’s the one visa that is covered by the Immigration Act of 1990. It is another way for foreigners to secure a green card in the country.

In the past, investors could only get a visa if they setup an entirely new enterprise or a startup company along the lines of Uber and other exotic businesses, but over the years this has changed to allow applicants to invest in an existing enterprise.
When the foreign national investor’s papers are approved, he and his family are granted a conditional permanent residence that’s valid for 2 years. Within 90 days, evidence must be submitted to prove that the investor has made the full investment and that 10 jobs have been created or preserved.

In 1992, Congress produced a pilot program for stimulating business activities and job growth, while permitting qualified aliens to become authorized permanent citizens. Under this program, a foreign investors can invest inside a pre-approved economic regional center or economic hub (collectively known as Targeted Employment Area). Investing inside a pre-approved center allowed investors to directly count the number of jobs created, which means that an investor can instantly know from first glance if the ten-job requirement has been created.
A Targeted Employment is a place where there’s a population of at least 20,000 and where the unemployment rate is 150% that of the national average. If an area is not a recognized TEA, an investor can gather and submit his own data to the immigration service so that a TEA determination can be made, however, the immigration service itself is not responsible for that.

Since the United States employs a worldwide taxation system where all national-based and overseas assets of its citizens are taxed, once a foreigner becomes a permanent resident, all his assets overseas are also taxed.

In recent years, thanks to the EB-5 Investor Visa, Las Vegas has enjoyed a fresh injection of life into its economy. The first project made in the area using EB-5 money was the Downtown Grand Casino, followed by SLS, known before as the Sahara Hotel. Other projects that followed include World Resorts, Clarion Hotel, Dynasty Hotel Casino, and Lucky Dragon.

And there are companies that are actively soliciting foreign investors. A very good example is Silverstein Properties, which marketed its Four Seasons Restaurant in downtown Manhattan as an EB-5 investment opportunity. Other TEA that have received EB-5 investor funding include the Hudson Yards Redevelopment Project, and the New York Wheel, among others.

If you are interested in investing in the United States, you can and should do it through the EB-5 Visa. It’s relatively easy to do when you decide to invest in a designated TEA project that needs a fresh infusion of funding.