We all know how frustrating it is when someone promises us something, doesn’t deliver, but seems to get away scot-free even though they never fulfilled their end of the bargain. In the business marketplace this happens all the time. There are times when independent project managers and contractors cannot complete a project due to financial difficulty or terrible preplanning. This is where surety bond coverage comes to the rescue. Implementing surety bond coverage is important because it is a promise to pay what is called “the oblige,” which is a predetermined amount that must be paid if the second party cannot meet their initial agreement. Even if the original commitment is not honored, the oblige is still protected.
Having worked in a variety of industries, HSNO’s experienced team of forensic accountants are capable of uncovering the minute details of a principal’s financial state. While our analysts review the surety to manage and measure the loss under the bond, our main goal is to ensure both parties walk away with their company name still credible.
Just in case you are the principal we also want to make sure that you don’t get taken advantage of. At HSNO our professionals will pay special attention to the penal sum in the original agreement. The penal sum dictates the minimum and maximum amount that will be paid. If the principal is not able to complete the task the bond is considered nugatory. It is this type of information that is crucial; eventually it will be used to verify government documents and conduct audits. Therefore, at HSNO we handle everything with complete care.