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The San Diego County Regional Airport Authority is committed to the San Diego region and ensuring that local small, disadvantaged, disabled veteran, and other small business enterprises have every opportunity to do business with the airport.

Recognizing that the main barriers for small businesses have been those that have been imposed by a lack of access to bonding and to financing, the airport's Bonding and Contract Financing Assistance Program assists small contractors in obtaining bonding and financing for airport contract work.

Program Services:

  • Bonding and Financing Consultation and Technical Assistance
  • Bid, Performance and Payment Bond Guarantees
  • Contract Financing Guarantees
  • Contractor-Focused Workshops and Seminars
  • Accounting Services
  • Funds Administration Services

Enrollment Information - The San Diego County Regional Airport Authority Bonding and Contract Financing Assistance Program is open to all experienced and licensed small businesses interested in participating.

To obtain more information, please contact the bonding office at (619) 400-2571 or click here to send an appointment request.

Bid, Performance, and Payment Bond Guarantees

A surety bond is a three-party agreement whereby the surety company assures the project owner (obligee) that the contractor (principal) will perform a contract in accordance with the contract documents. When a contractor requires its subcontractors to obtain bonds, the contractor is the obligee and the subcontractor is the principal.

Surety is designed to prevent a loss. The surety pre-qualifies the contractor based on financial strength and construction expertise.

There are three basic types of contract surety bonds:

  • Bid Bond - Assures that the bid is submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.

  • Performance Bond – Protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

  • Payment Bond – Assures that the contractor will pay specified subcontractors, laborers, and material suppliers associated with the project.

How Funds Administration Works

The San Diego County Regional Airport Authority's Bonding and Contract Financing Assistance Program is administered by Merriwether & Williams Insurance Services, a company that has developed, implemented and administered contract-specific surety bonding and financing programs for many West Coast municipalities, and is pleased to do so for the San Diego County Regional Airport Authority.

The 13-year success of these programs has resulted in the growth of numerous general and subcontracting businesses, and has provided access to opportunities which heretofore were unattainable because of the barriers imposed by lack of bonding and/or financing. Key to the success of these programs has been the partnership between Merriwether and Williams and the contractor, the broker, the lender, and the project owner. Working together, these partnerships have served to mitigate the traditional risks associated with these opportunities. Another key component of the program is Funds Administration.

Funds Administration (“FA”) is an underwriting tool sometimes required by a surety company as a condition of obtaining a bond. It is also required by the surety bond program to protect a guarantee provided to a surety on the contractor's behalf.

Although there are a number of FA companies utilized by various surety companies, the process is often similar: Essentially, progress payments are sent to the FA Company instead of directly to the contractor. It is the job of the FA to make sure the right people get paid the right amount at the right time. This includes payment to subcontractors, suppliers, etc., and to the contractor for their overhead and profit.

To help you better understand the process and to incorporate these tools into the management of your business, we regularly offer a workshop on Funds Administration.

How Partnering Works

Key to the success of the Bonding and Contract Financing Assistance Program is the partnership between Merriwether and Williams (program administrator) and the contractor, the broker, the lender, and the project owner. Working together, these partnerships have served to mitigate the traditional risks associated with contracting opportunities. Our partners all specialize in working with contractors. One of the services of our program is to link you to these partners and help you to establish a relationship.

Surety Brokers – Our surety broker partners help you to develop a relationship with one of our surety partners to facilitate your obtaining bonding.

Lenders – Our lending partners make working capital loans to program participants. They also provide counseling and training.

CPAs – Most contractors need to have a relationship with a CPA who understands the industry and can provide them with timely financial statements. Many surety companies and lenders often require CPA-prepared financial statements. One of the features of the program is to help you establish these relationships and access these tools.

Contracting Opportunities at the Airport

The Bonding and Contract Financing Assistance Program services can be used for all Airport Contracting Programs.

Copyright 2011 San Diego County Regional Airport Authority. All rights reserved.