Clark Construction, Inc. Works with Procore Risk Advisors to Improve Surety Program.
The Challenge
The team at Clark Construction, Inc. planned significantly more work in its future, including diversifying its portfolio and bidding more bonded projects. However, the leadership team at Clark was experiencing friction in their existing surety relationship, including scrutinous underwriting processes and burdensome collateral and personal indemnity requirements. Without confidence in the surety’s support for upcoming bond needs, the company didn’t know if it had the bonding capacity to meet its vision.
The Solution
Recognizing the need for a strategic partner, Clark Construction worked with Procore Risk Advisors. The contractor immediately benefited from partnering with a broker who had surety-specific expertise and could better advocate for improved surety support. Procore Risk Advisors helped the firm leverage its existing Procore technology to demonstrate an upward profitability trend and deliver a very strong case for underwriting. Within four days, the Procore Risk Advisors team secured a formal proposal from a new surety provider with significantly improved program terms.
The Results
Enhanced Financial Flexibility
Procore Risk Advisors successfully increased aggregate capacity by 25% and removed the need for full personal indemnity and collateral, facilitating more expansive project capabilities.
Optimized Rate Structure
Transitioning from a complex tiered sliding scale to a predictable flat rate, Procore Risk Advisors delivered a simplified, cost-effective pricing model.
Personalized Growth Support
With the comprehensive approach, Procore Risk Advisors is not just improving current conditions but paving the way for future business growth and expansion.
“The partnership with Procore Risk Advisors and our ability to target the jobs that we know we can be successful with has been a huge part of our revenue growth.”
Casey French
CEO
Shielding Risk by Diversifying Portfolio through Bonded Projects
Clark Construction Inc. is a general contracting firm that began in 2006. With its roots in custom residential projects, the firm has broadened its scope into commercial and multifamily work and has grown to approximately 100 team members.
Clark Construction’s workforce includes dedicated professionals, with the majority in construction management roles. Over 50% of employees proudly own a stake in the company’s success, which shows up not only in the projects they build but also in the relationships they foster with clients, architects, and trade partners.
As a people-first oriented CEO, Casey French understands that safeguarding what the Clark team has built requires not just prudent leadership but also a profound commitment to managing risk.
Enabling a Vision
To enable Clark Construction’s growth plan, Casey and the leadership team looked at diversifying its portfolio to provide added stability to its revenue stream. This meant positioning the company to take on more federal and public projects, most of which required bonds.
Because they were already very familiar with bonded projects, the team at Clark knew they needed a strong surety partner to enable their vision. However, their relationship with their existing surety partners had friction, including demands of personal guarantees, collateral requirements, continuous scrutiny, and a lack of genuine connection. The team at Clark was frustrated that they did not have a transparent roadmap for accomplishing their goals.
Risk Advisory, Backed by Data
Clark Construction reached out to Procore Risk Advisors, and the two teams worked together to explore a surety program that would fit the construction firm’s needs. Leveraging Clark’s use of the Procore platform, Procore Risk Advisors used project data to demonstrate Clark’s strong profitability and history of success – something that no other brokerage could offer.
Crafting a very strong underwriting narrative, Procore Risk Advisors was able to secure a surety program that removed collateral requirements, significantly reduced personal indemnification, and expanded Clark’s aggregate bonding capacity.
Personalized Surety that Aligns with People-First Culture
The culture at Clark Construction centers around empowering its people to make important decisions, fostering collaboration, and steering away from micromanagement. This philosophy is exemplified in the management principles of all of Clark Construction’s leaders—a testament to the company’s commitment to a collaborative and empowered workplace.
Aligning with the collaborative culture that defines Clark, Procore Risk Advisors worked extensively to understand the intricacies of Clark’s vision and empowered the Clark team to tell their own story in the underwriting process.
“The thing that Procore Risk Advisors did for us that really set them apart was their willingness to come in, learn about our business, and believe in what we were doing,” said Casey French.
Enabling Strategic Growth for Award-Winning, People-First Construction Firm
Procore Risk Advisors forward-thinking approach includes working closely with clients to provide ongoing risk advisory, keeping an unwavering pulse on industry dynamics, offering a willingness to explore new options, and swiftly turning around bid bond requests.
For Clark Construction, the ability to target projects without fear of inadequate bonding capacity, the streamlined bid bond requests, and the exceptional service was crucial. Procore Risk Advisors became more than a service provider; they became an integral part of Clark's journey.
