USA

Surety Reporting

Introduction

Contractors (both public and private companies) are required to obtain a Surety bond before undertaking certain contracted work for the Government in order to manage risk on construction projects. Before issuing Surety bond, Surety companies review contractors’ financial position to identify risks and determine eligibility for bonds. Also, Surety companies periodically review contractors’ financial position and as part of this process, contractors must submit financial statements and a Work in Process (WIP) report to the Surety companies. A WIP is a detailed schedule that ideally includes information on both in-process and completed contracts for the current period.

Pre-qualification process to obtain Surety bond

To minimize the risk of contract defaults, Surety companies follow a thorough, rigorous and professional pre-qualification process. This includes an in-depth review of the contractor’s financial strength, qualifications and business operation.

  • The contractor provides the information, which includes a financial statement and a WIP report in PDF or Excel format.
  • The Surety company adds this data into its systems.
  • Once the data is rekeyed into the system, the Surety company begins the analysis.
  • After successful review of the information submitted by the contractor, the Surety company issues a bond.

 Drawbacks of the current process

Under the current way of working, Surety companies need to rekey the information from the WIP report submitted by contractors into the system. This is problematic because it is:

  • labor-intensive
  • time consuming
  • costly
  • prone to manual errors.

DataTracks can help streamline the process by automating the creation of XBRL-formatted WIP reports and submitting the data directly to the Surety company, thereby reducing the manual rekeying of data. The DataTracks tool uses eXtensible Business Reporting Language (XBRL), which is a structured data standard that makes business and financial information computer-readable and easier to process. The result is that surety underwriting data processing is streamlined, therefore reducing costs and increasing timeliness and consistency.

Using the DataTracks software, contractors can create XBRL-formatted WIP reports and financial statements by linking their financial systems to the software or through using pre-formatted spreadsheets.

How does it work?

Surety Report

Why use the DataTracks software?

  • Consolidate data from disparate systems: Integrate relevant data from multiple sources (financial systems or Excel spreadsheets) and consolidate into a single view for reporting.
  • Cloud-based: Hosted on a secure cloud system for in-house control.
  • Co-authoring: Reports can be edited and reviewed from multiple locations at the same time.
  • Document consistency and version control: Allows versions to be created and compared for audit trail.
  • Auto link: Similar elements across the document can be linked, and edits are reflected throughout the entire document.

What we do

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