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Damien Strohmier

I'm a tenured Certified Public Accountant turned Surety Consultant that uses my 16 years' public accounting experience in the construction industry to partner with my clients and best advocate for them for all their bonding needs.
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Selling Surety: Highlighting the Qualitative Aspects to WIN Larger Bonded Jobs

Jul 17, 2025 11:22:19 AM / by Damien Strohmier posted in Surety

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In the competitive world of construction, government contracting, and other project-based industries, winning larger bonded jobs requires firms demonstrate both the capacity to perform and the qualitative strengths to deliver a project to the owner.

One of the most effective tools for showcasing these strengths is a well-crafted capability statement.  This document is a strategic tool that communicates your core competencies, past accomplishments, innovative approach, quality of personnel, and unique value proposition.

The capability statement is also a great way to highlight your firm’s strengths to a surety to maintain support on bonded jobs.  Below is a brief rundown of the critical aspects that should be included in a capability statement that would be reviewed with your surety:

Core Competencies: Clarifying What You Do Best

Your capability statement should clearly define your core services or trades. A contractor who can precisely describe its scope, whether it’s site work, vertical construction, electrical, or specialty installations, instills confidence in project owners and sureties alike. They know exactly what you bring to the table and can evaluate your fit for complex scopes of work.

Surety underwriters pay close attention to this section: it shows that you understand your business and are focused on the types of work you can successfully deliver at scale.

Past Accomplishments: Proving Performance History

Qualitative assessments often start with your track record. Highlighting key projects, especially those with similar size, scope, or complexity, demonstrates your ability to perform on larger, bonded jobs.

A strong capability statement will include select projects that showcase not just completion but success: on-time delivery, budget management, and safety records. These accomplishments help sureties justify higher bonding limits and reassure owners that you can handle larger responsibilities.

Innovative Approach: Differentiating Your Firm

Innovation isn’t only for technology companies. Construction firms should showcase how they deliver projects better. Maybe it’s through lean construction practices, advanced scheduling software, prefabrication capabilities, or sustainable building techniques.

Let your surety know how you approach problems creatively to deliver superior outcomes. This qualitative measure is critical for public owners and primes who want partners that add value, not just fulfill specs. 

Quality of Personnel: Building Confidence in Your Team

Larger projects introduce greater risks, so sureties and owners want to know about your leadership, project management staff, and field supervision. Featuring credentials, licenses, certifications, and years of experience signals you have the bench strength to execute.

Highlighting your personnel quality demonstrates that you aren’t just a small, informal operation but a professional organization prepared to scale.

Unique Value Proposition: Answering “Why You?”

Just as you have sold a job to an owner, your surety should understand why your firm is the best fit. It might be your safety record, your specialty experience, local knowledge, cost efficiency, or a combination of these.  It’s the compelling reason you’ll deliver superior value, manage risk effectively, and complete the job successfully.

Why This Matters for Bonded Work

Sureties don’t just underwrite your financial strength, they evaluate the whole picture, including these qualitative factors. A firm with a strong balance sheet but no clear demonstration of capability, experience, or differentiation may struggle to secure increased bonding capacity.

On the other hand, a business that can tell its story well, showing financial stability and qualitative strengths, has a better shot at growing its bonding program. That, in turn, enables you to bid on larger, more lucrative projects.

Take the time and invest in how you communicate these facets not just to your owners but also your surety. 

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Navigating Bonding Strategies in Uncertain Markets

Mar 31, 2025 4:24:01 PM / by Damien Strohmier posted in Surety

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Soft landing… We’ve likely all heard these words with regard to the economy and the monetary policies employed to combat inflation while avoiding a “harder” recession. Bonding strategies in uncertain markets are crucial during these times. One of those economic levers being used is interest rates. The Federal Reserve is now moving carefully as indicated by the rate hold in September, but because jobs and consumer spending data continue to be strong, further adjustments may be on the docket.

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IRS Employee Retention Credits Audits and Risk to Your Claim

Mar 31, 2025 4:20:22 PM / by Damien Strohmier posted in Surety

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Employee Retention Credit (ERC) claims by employers are once again being processed by the IRS after a moratorium period for any credits filed after September 14, 2023. During this period, the IRS performed a large study on a group of ERC claims to help determine the next steps on remaining claims and essentially develop an audit strategy for filed claims and ERC audit risks.

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Utilizing the SBA Surety Bond Program

Mar 31, 2025 4:18:54 PM / by Damien Strohmier posted in Surety

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With bonded work on the horizon for a new or growing company, owners may be wondering how they can get started and what programs are available for these initial bond needs, especially regarding surety bonds for contractors.

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Partnering with a CPA Firm and Bank for Construction Success

Mar 31, 2025 4:17:33 PM / by Damien Strohmier posted in Surety

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In the world of construction, navigating the financial landscape requires more than just basic accounting and banking services. Construction firms face unique challenges and opportunities, making it crucial to partner with a both a CPA firm and bank with significant construction experience. These specialized service providers understand the nuances of construction accounting and financial reporting, the allowable income recognition methods for small contractors, and the industry’s volatile nature. Here’s why these partnerships are essential for your firm’s success.

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Financial Resilience: Maintaining Bonding Capacity in a Tightening Construction Market

Mar 31, 2025 4:17:16 PM / by Damien Strohmier posted in Surety

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In a tightening construction market, the importance of financial planning and strategic equity retention cannot be overstated. Bonding capacity serves as a barometer for a construction company’s financial health and operational capability.  Financial resources are becoming increasingly constrained due to high interest rates, increased material costs, and a tight labor market.  Following a strategic financial plan is critical to maintaining a strong equity and working capital position to secure the levels of bonding capacity your business requires.

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What to expect when obtaining your first surety bond

Mar 31, 2025 4:15:47 PM / by Damien Strohmier posted in Surety

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Rarely is a first bond request planned for… More often the requirement arises when a business is going through something new. New customer, new public market opportunity, or new business relationship perhaps with a union. The point is that the business is expanding and likely encountering all the administrative pains that come with growth. On top of that, the company is now navigating securing its first bond, and needed it yesterday, a real test of “Surety Bond Success.”

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Maintaining Full Access to Credit Capacity

Mar 19, 2025 5:15:54 PM / by Damien Strohmier posted in Surety

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Maintaining availability on a line of credit facility is crucial for contractors, and Enhancing Credit Availability with Strategic Surety Solutions is a key approach to achieving this. Project demands, delayed payments, and unforeseen expenses are just three of the many cash flow challenges contractors face. Having readily available credit ensures that contractors can quickly adapt to the circumstances without disrupting their operations or having to pass on new opportunities.

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Public Labor Agreements and the Bond Market

Mar 19, 2025 5:14:55 PM / by Damien Strohmier posted in Surety

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The Biden administration issued an executive order mandating the use of Public Labor Agreements (PLAs) on federally funded construction projects exceeding $35 million, effective since January 2024. This aims to streamline labor practices, enhance worker protections, and ensure timely project completion. While this directive aims to foster a more organized labor market, PLAs impact bond market dynamics in multifaceted ways.

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Strategic Subcontractor Prequalification

Mar 19, 2025 5:11:24 PM / by Damien Strohmier posted in Surety

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The goal of any prequalification program, especially when it comes to Subcontractor Selection Risk Management, is the evaluation of potential subcontractors BEFORE they are hired. This then lowers the risk exposure and ensures the subcontractor has the necessary resources, skills, experience, and financial stability to complete work effectively and safely.

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