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JRG Surety and Insurance Agency, Inc.

Call us at: 949-413-9439

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    • Who We Are
    • Contractor Bonds
      • Contractor License Bonds
      • Bondability Letter
      • Bid Bond
      • Performance Bond
      • Payment Bond
      • Qualifying Individual
      • LLC Employee Bond
      • Ironworkers Union Bond
      • Mechanic's Lien Bond
      • Subdivision Bond
      • Subcontractors
    • Business & Specialty
      • California Surety Bonds
    • Case Studies
      • Ironworkers Bond Savings
      • Building a Strong Case
      • Breaking Boundries
      • Strength in Steel
      • Beyond the Bond Ceiling
      • Bid that Raised Concern
    • JRG Surety Blog

Call us at: 949-413-9439

JRG Surety and Insurance Agency, Inc.
  • Home
  • Who We Are
  • Contractor Bonds
    • Contractor License Bonds
    • Bondability Letter
    • Bid Bond
    • Performance Bond
    • Payment Bond
    • Qualifying Individual
    • LLC Employee Bond
    • Ironworkers Union Bond
    • Mechanic's Lien Bond
    • Subdivision Bond
    • Subcontractors
  • Business & Specialty
    • California Surety Bonds
  • Case Studies
    • Ironworkers Bond Savings
    • Building a Strong Case
    • Breaking Boundries
    • Strength in Steel
    • Beyond the Bond Ceiling
    • Bid that Raised Concern
  • JRG Surety Blog

Case Study: A Bid That Raised Concerns

From Denial to Approval: How JRG Surety Saved a $3M Construction Bid

A long-time JRG Surety client recently bid on a $3 million construction project in Orange County, CA. The contractor was the lowest bidder, but their bid was an astonishing $1.3 million lower than the second-place competitor. This significant gap raised red flags for the surety company, which questioned how the contractor could complete the project profitably with so much left on the table. Concerned about financial risk, the surety company was hesitant to approve the performance and payment bonds, putting the entire project at risk.

JRG Surety’s Solution: Building a Strong Case

Rather than accept the denial, JRG Surety took immediate action, meeting with the contractor to build a compelling case for approval. Drawing on our deep industry expertise, we crafted a detailed email on the contractor’s behalf, demonstrating why they were fully capable of delivering the project successfully:

  • Proven Track Record of Cost Savings: The contractor had a long history of masterminding cost-efficient projects, identifying unique ways to cut costs without cutting quality—a skill that set them apart from competitors.
  • Bid Strategy of the Second-Place Competitor: The second-place bidder only had two days to calculate their bid and, to avoid underbidding, padded their estimate as a safeguard.
  • Strategic Confidence: The contractor’s ability to innovate and optimize project costs provided a strategic advantage that allowed them to bid lower while still maintaining profitability.

The Outcome: A Win-Win for the Contractor & Surety

 JRG Surety’s expert negotiation and advocacy convinced the surety company to approve the performance and payment bonds, ensuring our client could move forward with the project.

When the project was completed, the contractor proved their expertise once again—turning a tidy profit of $330,000, approximately 10% of the total project cost.


Conclusion: How JRG Surety Delivers Results


This case underscores JRG Surety’s commitment to supporting contractors beyond just issuing bonds. Our deep understanding of contractor operations, risk assessment, and surety negotiations allows us to advocate effectively for our clients, ensuring they can secure the bonding they need—even in challenging situations.

If you’re a contractor in need of a strategic surety partner, JRG Surety is here to help you win bids, secure bonds, and maximize your success.

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JRG Surety and Insurance Agency, Inc.

288 E. Live Oak Ave, Suite A-802, Arcadia, CA 91006, USA

949-413-9439

Hours

Mon

06:00 am – 09:00 pm

Tue

06:00 am – 09:00 pm

Wed

06:00 am – 09:00 pm

Thu

06:00 am – 09:00 pm

Fri

06:00 am – 09:00 pm

Sat

07:30 am – 06:00 pm

Sun

10:00 am – 05:00 pm


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  • Contractor License Bonds
  • Bondability Letter
  • Bid Bond
  • Performance Bond
  • Payment Bond
  • Qualifying Individual
  • LLC Employee Bond
  • Ironworkers Union Bond
  • Mechanic's Lien Bond
  • Subdivision Bond
  • JRG Surety Blog

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