BONDING POLICY

A.    Bonds will be issued only under the following circumstances:

    1.    Exposure to loss is minimized.

    2.    Expectation that the general and sub-contractors will purchase materials from Miyake Concrete Accessories, Inc.

    3.    Power of attorney for the receipt and disbursement of all construction funds is obtained.

B.    Bonds will be considered only for those meeting the established financial and operational requirements.

    1.    General Contractor Requirements:

        a.    Must be licensed in the State of Hawaii.

        b.    Must have prior experience.

        c.    Must have acceptable credit history.

        d.    Must use licensed electrical and plumbing sub-contractors.

C.    Bonds will be considered only for residential and commercial projects meeting guidelines:

    1.    Design and architecture is not overly complex.

    2.    Includes at least 5% profit.

D.    Will not bond:

    1.    Any projects after construction has begun

    2.    Site work other than normal or minimal grading

    3.    Retaining walls

    4.    Landscaping

    5.    Elevators

    6.    Swimming Pools

    7.    Tennis Courts

    8.    Demolition

    9.    Delay or liquidated damages

    10.    Other items identified which are beyond our area of expertise and involve materials not supplied

    Any such items included in the project will be specifically excluded from the bond.

E.    Bonding Funds

    1.    Miyake Concrete Accessories, Inc. shall receive and disburse all construction contract funds.

    2.    Disbursements will be made from construction proceeds only.

    3.    Disbursement to the contractor, sub-contractors and supplier are to be based upon invoices received for work performed or for materials supplied.

    4.    Percentage of the bond amount shall be retained until the expiration date.  Check with David Miyake.

F.    Bond Review

    1.    Construction budget is adequate to successfully complete the project.

    2.    Cost estimates or material quotes must not be no more than 90 days old.  Check with David Miyake.

    3.    Plans, specifications and estimate form must be consistent.

    4.    Stipulated completion time must be reasonable.

            Up to $100,000.00        90 days

            Up to $200,000.00        120 days

G.    Contractor

    1.    First time applicants must submit 2 years of financial statements (corporate and personal).

    2.    Account must not be delinquent.

    3.    Bonding department to investigate complaints with State of Hawaii.

    4.    Please supply us with a list of the following:

            a.    Number of projects in progress

            b.    Dollar amount of each project

            c.    Status of each project

H.    Bond Application Requirements:

    1.    Material list

    2.    Bond application

    3.    Plans and Specifications

    4.    Estimate sheet/form

    5.    Sub-contractors proposals

    6.    Construction Contract

    7.    Personal Guaranty

    8.    Certificate of Insurance

    9.    Copy of Building Permit

I.    Bond Execution

    1.    All bonds are in triplicate (3 originals)

    2.    Bonds are not in effect until fully executed by all of the following:

        a.    Officer of Miyake Concrete Accessories, Inc.

        b.    Contractor

        c.    Owners(s)

        d.    Lender

    3.    Bonds that are not returned fully executed, within 30 days from approval will be void.

For any questions regarding our bonds, please call the Wailuku office at (808) 244-7988 and ask for Judy or Jenny!