Kearey Construction Secures Bond for Largest Project & Receives New Improved Surety Program with Procore Risk Advisors
The Challenge
A prominent family-owned commercial builder with multi-state operations in the mid-Atlantic area, Kearey Construction was looking forward to embarking on its largest job in its history. The project, which was 2.5 times the size of any of its previous successful projects, would enable the firm to venture into significant growth opportunity areas.
The team at Kearey had done considerable due diligence to position the firm for success, but as they got closer to the project start date, the leadership team received unexpected news: their surety would not provide the required bond for the project. With the need for a significant, time-sensitive bond and expanding backlog, the firm reached out to Procore Risk Advisors to explore surety support.
The Solution
Procore Risk Advisors immediately mobilized on behalf of Kearey Construction. The Risk Advisors team utilized their deep construction background, surety expertise and financial acuity to prepare a compelling submission. Employing relationships in the market, the brokerage secured a formal proposal from a new surety partner. Procore Risk Advisors presented Kearey Construction with a program that not only met the immediate need, but also enabled the contractor to plan future growth with the vital surety support it needed.
As a partner with Procore Risk Advisors, Kearey Construction witnessed first-hand the benefits of a tech-enabled construction brokerage. The detailed financial analysis and rapid response from the brokerage resulted in improved surety proposals within a week, offering increased capacity, lower pricing, and the elimination of personal indemnity.
The Results
Significant Capacity Boost
Procore Risk Advisors successfully amplified Kearey Construction’s aggregate capacity by 80%, creating a wider berth for risk coverage.
Job Growth
By achieving a substantial 150% increase in single job capacity, Procore Risk Advisors effectively enabled Kearey Construction to undertake larger, more ambitious projects.
Cost Efficiency & Growth
Procore Risk Advisors excelled in establishing a future-ready surety program that fosters business expansion. Moreover, by securing a more cost-efficient flat rate instead of a sliding scale, significant financial savings were realized.
“Rather than lose the opportunity—and potential future opportunities—the Procore team really stepped in and knocked out a home run.”
Justin Roath
Vice President
A family-owned and community-oriented business, Kearey Construction has established a vision for creating new business growth that fosters opportunities within the local community. Kearey’s commitment is not just to strengthen its business regionally, but to also give back, foster relationships with local subcontractors & vendors, and invest in the fabric that makes their community unique.
As Kearey evolved and ventured into the commercial arena, the risk profile of the organization changed dynamically. Managing the intricacies of single-family homes differed greatly from dealing with the complexities of commercial developments—both for sale and for rent. The importance of risk became increasingly evident, demanding a robust risk management strategy.
The leaders at Kearey became increasingly aware of the importance of working with a risk partner aligned with the company's values and reached out to an advisor who worked within Procore, a business partner they already knew and trusted.
Kearey’s use of the Procore platform enabled them to better manage the business, reduce risk, and streamline operations. This contributed to the firm’s ability to achieve remarkable revenue growth from $12 million to $55 million in six years. So, it was a natural fit to engage Procore Risk Advisors as they looked to create a future of safety, stability and growth.
The partnership with Procore Risk Advisors became pivotal when Kearey Construction secured a $25.3 million contract, double its largest before. When the previous bonding partner backed out, Procore Risk Advisors worked tirelessly, engaging markets that other brokers had overlooked, and securing a proposal for a new surety program that would support the strategic vision of Kearey Construction.
With Procore Risk Advisors, Kearey Construction experienced responsiveness, immediate communication, and willingness to go above and beyond. This approach resonated with Kearey’s family-owned and community-focused culture.
“Procore Risk Advisors is a strategic partner for us because they're willing to go above and beyond what anyone else was willing to do,” said Justin Roath, vice president of Kearey Construction. “It’s a relationship that is family, it's culture, it's doing what's necessary to get the job done, and we didn't have that experience elsewhere.”
