News Release

For Immediate Release 
Contact: Marla McIntyre 
202-686-7463; mmcintyre@sio.org

WHY DO CONTRACTORS FAIL? SIO HAS THE ANSWERS

APRIL 16, 2004, WASHINGTON, DC – Construction is a risk-filled enterprise – and every party involved on a project needs to be aware of the causes and signs of a contractor in trouble. The Surety Information Office (SIO) has released the newly-updated publication, Why Do Contractors Fail?, to explain the root causes of default, the symptoms of a contractor in trouble, and the protection and prevention surety bonds offer. Construction management experts at FMI also have contributed a new section on the qualities of a successful contractor.

This newly-revised publication includes:

• Construction business failure rates; 

• The Surety Association of America (SAA) top five contractor-failure factors; 

• Data on failed contractors by age of business; 

• Events that lead to contractor failure; 

• Warning signs of a contractor in trouble; and 

• Qualities of a solid contractor. 

Free copies of Why Do Contractors Fail? and SIO’s other materials may be ordered online at www.sio.org or by contacting SIO at 202-686-7463; sio@sio.org.

-30-

SIO was formed in 1993 to disseminate information about the benefits of contract surety bonding in private and public construction. Located in Washington, DC, SIO is supported by the National Association of Surety Bond Producers (NASBP) [surety agents and brokers] and The Surety Association of America (SAA) [surety companies]. Surety bonding is a careful, rigorous, and professional process in which surety companies prequalify contractors and then assure project owners that these contractors are capable of performing the contract and will pay certain subcontractors and suppliers associated with the project.