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Surety Bonds & Funds Control Services

MDD offers an array of accounting services related to surety bonds and miscellaneous bonds. Our experts are nationally recognized for delivering exceptional service and have been retained to handle some of the more significant bond matters over the years.

What makes MDD uniquely qualified is that, with regard to the above services, our staff can withstand the highest degree of scrutiny should a matter eventually require testimony or result in litigation.

surety, surety bonds, funds control services, surety and miscellaneous bonds

With more than 40 locations worldwide, we’re able to provide immediate, local assistance virtually anywhere in the world.

Some of the services we provide to the bond community include:

Surety Bond Matters

  • Provide accounting insight to surety bond underwriters
  • Assistance in pre-default surety bond matters
  • Financial analysis of surety bond principal (books & records investigation)
  • Reserve analysis / exposure calculations
  • Provide cash flow analysis throughout the span of the claim matter
  • Assist in the development of strategic business decisions
  • Providing specific accounting assistance to company claims personnel
  • Evaluation of claims
  • Aid with re-let of projects
  • Assist with subcontractor ratifications
  • Seek out and highlight opportunities for recoveries
  • Accumulate and monitor assets of principal
  • Aid with the sale and accounting of assets
  • Aid in actions against indemnitors
  • Provide services on domestic and international projects

Construction Litigation

  • Evaluate accounting related aspects of claims
  • Interview key personnel or witnesses
  • Integrate financial aspects of the claim with facts and coverage issues
  • Work cooperatively with authorities investigating the matter
  • Prepare accounting reports that analyze the claim
  • Aid the claims department and legal counsel throughout the claims process
  • Assist in subrogation actions

Funds Control Services

  • Formation of creditor protected escrow accounts
  • Maintain project-by-project accountings
  • Inquire and investigate status of progress payments
  • Evaluate requests for disbursement
  • Address third-party creditors
  • Preserve back-up for account transactions
  • Register sureties with governmental agencies
  • Establish principal collateral accounts as security for bond underwriting

For trusted assistance with the quantification of surety losses, hire MDD.

Case Studies

>Surety – Large Construction Contractor Default

MDD assisted with a large construction contractor default.  We accounted and processed bond claims and calculated potential loss exposure throughout this multi-year engagement.

MDD’s international footprint was essential with this contractor’s complex entity structure coupled with uncompleted projects around the world.  Our third-party funds control services were also utilized to assure efficient use of millions in remaining contract proceeds.

>Surety – Construction Vendor Documents

MDD was hired to account for policy costs and the retention of construction related vendor documents in connection with a $150,000,000+ remediation of a former World War II ammunition site.

Maintaining accurate records proved to be critical as various tranches of coverage were triggered throughout this 6+ year clean-up of approximately 1,000 acres in California.

>Surety – Loan Misappropriations

MDD aided legal counsel in the successful defense of $10,000,000+ of alleged loan misappropriations by analyzing the receipt of approximately 50 condominium net sale proceeds and accounting for the construction costs incurred in erecting the condominium.

Ultimately, the alleged diversion of loan proceeds by a bank officer were proved to be unfounded.

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