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July 2006 |
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Home | Free Stuff | PPTs | News | Awards | Update LSA |
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Welcome to the Surety Information Office’s LSA Communiqué, a newsletter for Local Surety Association officers and members. Through the LSA Communiqué, SIO will bring you tips and ideas for promoting contract surety bonds and making the most of your association. If you have suggestions or questions, contact Marla McIntyre, Executive Director, or Marc Ramsey, Communications Manager, at (202) 686-7463.
People Are Talking ’Bout New York City Surety Association Ever walk past a crowd and stop to see what all the commotion is about? You think to yourself, “This must be something entertaining or interesting. Or, gosh, maybe it’s something important. Maybe it’s something I should know about!” There’s a crowd assembled around the New York City Surety Association (NYCSA). NYCSA has added 20 new members in only five months, a 40% increase in membership for a total of 54 paid members. More than 100 people attended the association’s first luncheon meeting earlier this year, and about 75 attended the second luncheon. So what’s the big attraction? Joseph Cieri, Treasurer of NYCSA and Contract Manager, Safeco Surety, said it’s all part of a major membership drive focusing on showcasing member benefits. When the association surpassed its goal, it celebrated with “50” decorations and balloons. “The bigger the association, the more advantageous it is for members,” Cieri said.
The first step was to expand membership beyond surety agencies and companies to attorneys, accountants, and bankers. Doing so expanded diversity in the group, brought fresh ideas and perspectives, and enhanced networking opportunities. The next step was to recruit top-notch speakers for the association’s three luncheon meetings throughout the year. For example, Kimberly Ostrin, President of NYCSA and Senior Underwriter, Liberty Mutual Surety, brought in two extremely influential and popular surety executives for the first meeting - Dennis Perler, President, Liberty Mutual Surety, and Terry Cavanaugh, Chief Operating Officer, Chubb Surety. The third step was to generate pride in membership. The association produced plaques for each member to proudly hang on their office walls. “We invested a lot of money, but it gave people another reason to become members,” Cieri explained. The key ingredient to the drive’s success was communication. The association’s Secretary, Priscilla Hammett, Underwriter, Chubb Surety, was responsible for sending e-mail notices to members; keeping up the buzz through word-of-mouth; and creating poster boards announcing forthcoming events, speakers, and activities. “We found that it’s really important to keep up momentum between meetings, to keep e-mail notices out to remind members,” Cieri added. “And Kim has really done a good job spreading the word on important current issues such as bond forms and contract specifications.” In addition to the three luncheon meetings each year, the association hosts three social engagements: a holiday party, a golf outing, and a special event such as a Manhattan cruise or bowling party. Members, whose annual dues are $250, receive discounts on these functions. Members also find value in participating on committees focused on Web site development, lobbying, and promoting surety bonds in the private sector to name a few. Boosting membership has its benefits for the association, too. It has generated more cash flow for the association, improved the group’s dynamics, and given the association a more powerful voice. Does your Local Surety Association (LSA) have an accomplishment worth sharing with other LSAs? Tell SIO about it by contacting Marc Ramsey, Communications Manager, at (202) 686-7463. Visit the Surety Professionals section on SIO’s Web site for more information or resources, or order free materials via SIO’s online store.
Promote Surety with SIO’s 2006 ENR Supplement We can talk about the value and importance of contract surety bonds in construction until we’re blue in the face. But when it comes down to it, public and private construction project owners, contractors, and others need to hear it from surety professionals. That’s why SIO interviewed 15 surety executives and developed the biggest surety supplement ever for Engineering News Record (ENR). Published June 5, 2006, the “2006 Surety Market Report – Surety Bonds: Getting the Job Done” is a whopping 32 pages and can be downloaded via SIO’s Web site. It’s a perfect tool to give to public and private construction project owners, contractors, design professionals, and others interested in surety bonding.  This year, surety executives say the industry is willing and able to meet the construction industry’s demand for contract surety bonds, but they say the bigger question is whether contractors qualify for it. Most executives are confident that surety is readily available for the qualified contractor, but as the industry looks to sustain profitability, underwriting is expected to remain disciplined.
Also in this issue, executives discuss why lenders require bonds as a condition of the construction loan as more lenders recognize the true value of surety bonds. In “Why Bankers Bond,” author Dev Strischek, SunTrust Banks’ senior vice president and senior credit policy officer, explains from a banker’s perspective how surety bonds mitigate construction risks. He cites the rigorous prequalification of the contractor and the technical, financial, and management resources sureties provide contractors to help prevent default. The supplement also takes a look at why contractors fail and how to avoid a claim with articles by FMI, Liberty Mutual Surety, and a St. Paul Travelers case study. Download the supplement via the SIO Web site; or contact SIO at (202) 686-7463 or sio@sio.org.
Summer School: SIO’s New Surety CD Perfect for Students Teaching a college construction course or guest lecturing this year? SIO has a new Macromedia Flash® CD designed to help educate students about contract surety bonds. This interactive, narrated CD provides a comprehensive overview of types of bonds, roles of the producer and underwriter, and how bonds differ from letters of credit and insurance. The CD also includes a contractor questionnaire, sample indemnity agreement, financial statement, and work in progress report. The CD’s resources include:
If you are interested in teaching a class on surety, SIO may be able to help you find a venue in your area. Contact SIO at (202) 686-7463 or sio@sio.org. All of SIO’s products and materials including - Surety Bonds: A Guide for Students - can be ordered free via SIO’s online store.
NASBP’s Surety School will be August 16-19, 2006, at the Fairmont Hotel in Dallas. It is the last Level I offering in 2006 for new surety bond producers, in-house bond department support staff, and others new to the surety industry. Download the brochure (PDF) with registration information from the NASBP Web site or call (202) 686-3700. The Level I curriculum includes an overview of the surety industry, surety bond information gathering techniques, financial analysis, submissions to surety companies, commercial surety, and an introduction to claims handling. “The information taught during the Surety School provides the fundamental building blocks to understand the surety industry,” says 2005 SIO Tiger Trust inductee David Fortenberry, Stewart Sneed Hewes Inc.
Carl E. Dohn Jr. Joins SIO Policy Board
Other SIO Policy Board members are:
SFAA Offers New Subscription Program The Surety & Fidelity Association of America (SFAA) now offers a new annual subscription program to non-SFAA members. Subscribers will receive SFAA’s bi-monthly Newsletter and have electronic access to:
The annual subscription fee is $5,000. For more information, visit the SFAA Web site or contact Barbara Finnegan Reiff at (202) 778-3626.
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Carl Edward Dohn Jr., President, Dohn & Associates of Palatine, IL, has joined the SIO Policy Board, representing the National Association of Surety Bond Producers (NASBP). He replaces Steve Cory, President, Cory, Tucker & Larrowe Inc. of Metairie, LA, who was named President of NASBP at its annual meeting May 10, 2006, in Orlando, FL.