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CASE STUDY

GC Embarks on Ambitious Growth Plan Enabled by Increased Surety Capacity

 

 

Procore Risk Advisors Insurance & Surety Brokerage Secures $100M for Southeast Contractor for Awarded Federal Contracts

The Challenge

A 30-year general contracting firm based in the southeast was successfully executing a multi-year strategic growth plan. Within a few weeks, the GC was awarded several large federal government contracts, pushing the contractor’s backlog to nearly $100 million—their highest ever. The new awards required $50M in immediate bonding support, including a $20M bond for the contractor’s largest project. While the opportunity for the contractor was enormous, unfortunately, they quickly learned their surety partner was unable to secure viable bonding alternatives from the surety marketplace, thereby hamstringing the contractor’s growth and long-term prospects.

The Solution

Procore Risk Advisors met with the firm’s leadership to understand the history and vision of the company, and completed a detailed pre-underwriting review of their successful operations enabled by the Procore Platform. Procore Risk Advisors leveraged a tech-driven underwriting narrative and their construction surety expertise. Within four business days, Procore Risk Advisors secured a formal, competitive, long-term $100M surety facility that solved the contractor’s immediate bond needs and enabled the contractor to continue their upward growth trajectory.

The Results: 

  Previous Program Risk-Advisors_Logo_Lockup_stacked
Aggregate Capacity $70M $100M (+43%)
$50M Worth of Immediate Performance & Payment Bonding Needed Not Supported Approved 
$20M Performance & Payment Bond Need (Largest Project) Not Supported Approved 
Surety Program Facilitates Future Growth No Yes

Procore Risk Advisors secured:

  • 43% increase in aggregate capacity, providing confidence that support was in place for the company's future growth.
  • $50M in performance and payment bonds, enabling the contractor to move forward with the contracts it was awarded.
  • $20M bond is needed for the contractor to begin the largest job in its 30-year history.

LOCATION
Southeast 

FIRM TYPE
General Contractor

Procore Risk Advisors (PRA) is a brand of Procore Insurance Services, Inc., a modern insurance brokerage offering Surety and Insurance products with its principal place of business at 221 W 6th Street, Suite 1800, Austin, TX 78701. Licensing Information

PRA-044-10-9-2023