{"id":1785,"date":"2023-09-06T10:24:24","date_gmt":"2023-09-06T14:24:24","guid":{"rendered":"https:\/\/parrotsuretyservices.com\/?p=1785"},"modified":"2023-09-06T10:24:24","modified_gmt":"2023-09-06T14:24:24","slug":"overbillings-vs-under-billings","status":"publish","type":"post","link":"https:\/\/parrotsuretyservices.com\/overbillings-vs-under-billings\/","title":{"rendered":"Overbillings vs. Under billings"},"content":{"rendered":"\n
Contractors, or principals, are often curious if sureties prefer over billings or under billings. The answer can change depending on the surety; however, defining the two can better help you understand the underwriter\u2019s potential concerns of both. <\/p>\n\n\n\n
Under billings<\/strong><\/p>\n\n\n\n Extensive under billings <\/strong><\/em>could evidence unapproved change orders; the underwriter will want to see some financial capacity to withstand losses that could occur as a result.<\/p>\n\n\n\n Over billings<\/strong><\/p>\n\n\n\n Extensive over billings<\/em> could be a sign of job borrowing as a result of a cash flow crunch; the underwriter will want to see the overbilled amounts represented in cash on the balance sheet.<\/p>\n\n\n\n The fact is contractors will always show some overbilling or under billing. Either of these should be avoided to the greatest extent possible. As a contractor it is important to understand that large under billings or over billings will require an explanation, especially if these billings represent a significant percentage of your current assets or current liabilities.<\/p>\n\n\n\n If you want an agent who is familiar with the surety bonding process and who can maximize your surety bond program, then look no further than one of Parrot Surety Services\u2019 Surety Bond Specialists.\u00a0Parrot is the premier surety agency in the United States for advising and managing all types of surety bonds and bond programs.<\/em><\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n\n
\n