Entries by David Druml - President and Founder, Direct Surety

Navigating Risks: Insights into the Construction Industry – Part 1

In the bustling world of construction, success isn’t just about building structures—it’s about navigating a complex landscape of risks. From financial missteps to supply chain disruptions, construction companies face numerous challenges that can impact their bottom line and reputation. In this blog, we’ll explore some of the key risk factors that affect the profit-making ability […]

Big is Not Always Better

An improving economy is often a precursor to a rise in contractor default. Why is this the case? For starters, in the excitement of building a bigger backlog contractors are often unprepared to support an increased workload with the existing resources. Uncontrolled growth often jeopardizes the efficiency of existing systems and can disrupt once successful […]

Bid to Win!

The Ingredients for Success — Every contractor knows that intelligent and accurate bidding is a critical ingredient to success, however, many contractors focus more on running jobs to make a profit rather than bidding smart to avoid a loss. The only way to consistently produce accurate bids that meet your company objectives is to put in […]

Know Thy Equipment

Too often, contractors with significant equipment inventory use industry standard rental rates for anticipated equipment usage instead of actual costs when preparing a bid—a practice that could cause you to lose a job in today’s tight bidding environment. Using industry standard rental rates simply does not take advantage of the potentially lower cost of owned […]

A Fist Full of IOUs

More construction businesses fail from the lack of cash due to poor cash management than from “bad” jobs—it’s a fact. One of the main causes of poor cash management is the ineffective collection of receivables. Your ability to survive—and even grow—in this industry demands that you get paid in a timely manner. Timely means getting […]

Congratulations! You’re Broke.

Mismanagement of Cash Flow — At Direct Surety, we have had the opportunity to work with many successful construction organizations. We’ve also worked with a few not so successful companies that should have been. The main cause of these business flops has almost always been their rocket-like success and then the sudden discovery they’ve run out […]

Where’s Waldo

Lack of Inventory Control — Over the past 30 years in construction, there have been countless times when I’d meet a job foreman wandering around the shop or yard muttering, “I know we have it out here somewhere.” He’d look and look for that misplaced tool, a section of steel plate or even a backhoe. “Where […]