46 U.S. VETERANS MAGAZINE WWW.USVETERANSMAGAZINE.COM
VOBs & supplier diversity
G
eneral engineering contractor Rod Edison had a dream of landing a big construction contract. Owner of Max Out, a demolition, site work, grading, asphalt and concrete paving and masonry company, Edison had been successful in obtaining nfejvn.tj{fe!dpousbdut!boe! being a subcontractor. With Los Angeles Metropolitan Transportation Authority (LA Metro), Los Angeles World Airports (LAWA) and Los Angeles Department of Water and Power (LADWP) having bo!fydftt!pg!%311!cjmmjpo!jo! construction projects in the works, Edison's goal was to elevate his business to the next level by subcontracting with a prime contractor on a major infrastructure project. To protect public tax dollars, public agencies require contractors to have a performance bond equal to the cost of all contracts exceeding a certain threshold in order to bid on projects with certain public agencies. The performance bond is a way to ensure that the work will be completed. If a contractor fails to perform the work, or pay other costs associated with the contract, the insurance company furnishing the bond xjmm!hvbsbouff!uif!gvmmmnfou!pg! the contract. "One of the main barriers to growth for small construction companies-and small businesses in general-is getting bonding and working capital," said Lakeisha Bearden, Program Development Manager for Merriwether & Williams Insurance Services (MWIS), a risk management and insurance brokerage service company.
Bonding Leads to Business Growth
Bonding assistance program seeks veteran-owned businesses
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"Qualifying for a Payment and Performance bond is a rigorous and thorough process whereby insurance companies look for evidence of credit, capacity and character in order to extend surety credit and often may require collateral from the contractor as well. For the larger contracts, many small businesses simply don't have the resources on their own to be eligible for bonding they need." MWIS has been the link between public entities seeking to expand opportunities for small and local businesses and rvbmjfe!cvtjofttft!gps!pwfs! two decades. The California- based insurance agency was recently awarded the contract with L.A. Metro to administer a Contractor Development and Bonding Program (CDBP). The DECQ!bttjtut!Nfusp.dfsujfe! Small Business Enterprise (SBE), Disadvantaged Business Enterprise (DBE) and Disabled Veterans Business Enterprise )EWCF*!snt!tfdvsf!tvdjfou! bonding to work on Metro construction projects The CDBP provides contrac-
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