Moxy Miscellaneous Ironworks
Friday, April 15, 2016
As a small contractor in a competitive market, Moxy Miscellaneous Metals’ prime focus was on performance and winning the next project. They weren’t focusing at all on obtaining a bond (aggregate or single) or if they were to obtain a bond what their capacity would be. Before the USDOT/ SFAA Bonding Education Program (BEP) Moxy owners Charles and Randy believed that “bonding a project” was synonymous with performing a multimillion dollar project, a sentiment which they later discovered not to be true.
Charles and Randy started Moxy Miscellaneous Metals (Ironworks) in September of 2011, specializing in the installation and fabrication of miscellaneous metals. They were both members of Ironworkers Local #5 with extensive training and were both very knowledgeable of the trade. Their business model was very simple, “provide our customers with union quality work at an “open shop” price.” They worked third tier projects for a couple of years to build up capital then in 2013, took the opportunity to work directly for a general contractor. While very successful, they knew at some point that they needed to start preparing for the next level of construction. To prepare, they both took a management class through Turner, which was extremely helpful in pushing them to that next level. By 2016, Charles and Randy owned two Miscellaneous Metals installation firms and one Metals Fabrication shop.
Although they had not yet reached the project volume needed to bond, they were quite certain that they would need one in the near future. Through an industry friend, Nyime Gilchrist, manager, Bonding Education Program, USDOT, they found out about the BEP. Ironically, midway through the class they ran into a situation that required a bond. The project that they were working on required a change order that was well within their expertise to perform, but brought the cost up to exceed 250K, requiring a bond for the work. With that missed opportunity they learned two important lessons; bonds are project specific and the dollar value varies.
During the BEP class, they met Josh Etemadi, from Construction Bonds Inc., recalling, “we couldn’t have met a more patient, insouciant, understanding, down to earth and knowledgeable person when it pertains to bonding.” As a new firm, Randy and Charles found that there were important business pieces that they just didn’t have in place (i.e. great accounting firm, financials, profit & loss statements, etc.). Working diligently with Josh over the course of 6 to 8 months, they were able to successfully get all of the financial requirements in place to the bonding agents’ liking. After 9 hard months of work from everyone involved, they were able to secure roughly $300,000.00 in bonds and are currently working on a 1.6 M dollar bond that they are extremely confident in obtaining. “We feel so fortunate to have been a part of the BEP where we met Josh. Sometimes he walked us through, at other times he held our hand and yet other times he pushed us through this process.”
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