Article by American Global, published on the IRMI website

While the latter half of 2022 brought some relief from the worst impacts of the global pandemic, supply chain disruptions, labor challenges, and significant commodity price spikes, we are now challenged with a national economy that is dealing with the highest inflation in 40 years. This inflationary pressure and increasing labor costs have caused key central banks to take action to tame inflation, creating the swiftest rise in interest rates in decades, which opens up a real potential for a recession in 2023.

For our industry, the next logical question becomes, “What impacts will this have on the construction community, and specifically, how will sureties react when it comes to underwriting new (and even existing) clients?”

Sections covered in article:

  • Surety Underwriting in a Recession
  • WIP Schedule
  • WIPs and Underbilling/Overbilling