CSOA's standardized operational stress test is for distressed general contractors, sub contractors and vendors. It gives the surety a method of measuring the continuing bond-ability of these customers. We recommend this test to keep the surety abreast of the latest conditions of each of its distressed customers.
The companies being tested will be given a Contractor Report Package to complete. This is the package that CSOA uses to perform the test. The scrutiny of this package is dependent upon the test level selected by the surety. See Test Levels above.
The test will result in a score between 1 and 5 (5 being the highest). Along with the test results are recommendations based on their score along with how often the customer should be tested.
The object of this standardized operational stress testing is to give the surety cost effective insight into the companies they are bonding. It also gives you the ability to compare the capability of the company with the rest of the companies in your portfolio.
CSOA Surety Scale:
1 - Not bondable. These companies have none of the tools in place to be bondable resulting in a low test score.
2 - Not bondable at this time. These companies have some of the tools in place but scored low in many of the tests. These
areas are discussed with the client and they can be retested when they feel ready to score at least a 3.
3 - Bondable at a high risk level. These companies are on the bubble. They have a lot of good qualities but need
improvement in certain areas. These companies should be tested a minimum of once a year. Surety should monitor closely on
individual criteria test that scored below a 3.
4 - Bondable at a normal risk. These are your average companies and should be tested a minimum of once every two years.
5 - Bondable at the lowest risk. These companies are the best of the best. They have all the tools in place and scored very high
in most of the tests. These companies should be tested a minimum of once every two years. Companies scoring a 5 in all
tests will receive a 5+ rating.
All test score results are to the tenth. Example test score results are: 3.2 4.5 4.8
The companies being tested will be given a Contractor Report Package to complete. This is the package that CSOA uses to perform the test. The scrutiny of this package is dependent upon the test level selected by the surety. See Test Levels above.
The test will result in a score between 1 and 5 (5 being the highest). Along with the test results are recommendations based on their score along with how often the customer should be tested.
The object of this standardized operational stress testing is to give the surety cost effective insight into the companies they are bonding. It also gives you the ability to compare the capability of the company with the rest of the companies in your portfolio.
CSOA Surety Scale:
1 - Not bondable. These companies have none of the tools in place to be bondable resulting in a low test score.
2 - Not bondable at this time. These companies have some of the tools in place but scored low in many of the tests. These
areas are discussed with the client and they can be retested when they feel ready to score at least a 3.
3 - Bondable at a high risk level. These companies are on the bubble. They have a lot of good qualities but need
improvement in certain areas. These companies should be tested a minimum of once a year. Surety should monitor closely on
individual criteria test that scored below a 3.
4 - Bondable at a normal risk. These are your average companies and should be tested a minimum of once every two years.
5 - Bondable at the lowest risk. These companies are the best of the best. They have all the tools in place and scored very high
in most of the tests. These companies should be tested a minimum of once every two years. Companies scoring a 5 in all
tests will receive a 5+ rating.
All test score results are to the tenth. Example test score results are: 3.2 4.5 4.8
Distressed Contractor Standardized Operational Stress Testing for Sureties
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Contractor Operational Stress Testing Agency
CSOA
Home • Standardized Stress Test • Sureties • Lending Institutions • Test Criteria • Test Levels • Final Report
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CSOA provides Standardized Contractors Operational Stress Testing of Distressed Contractors for the Surety and Lending Institution Industries