Category: Surety Bond Articles

Colorado Enacts P3 Bonding Requirements

 Bill Provides Additional Protections for Workers, Businesses and Taxpayer Money

April 18, 2019, Washington, D.C. ? Colorado Governor Jared Polis has now signed SB 138 into law. The bill amends Colorado law to clarify that current surety bonding requirements for public construction projects apply to public-private partnership construction projects.

?Requiring surety bonds on P3 construction projects greatly reduces the risk of leaving taxpayers on the hook in the event of a contractor default, ensures projects are completed, and protects subcontractors, suppliers and workers,? says SFAA President Lee Covington. ?When surety bonding protections are in place, everyone wins.?

P3s provide a new method of financing for public infrastructure projects. A P3 is a way for governments and agencies to access the capital market, but the construction risk remains the same. Research shows more than one out of four contractors fail. Surety bonds significantly increase the likelihood that a construction contract will be completed, and that subcontractors, suppliers and workers will be paid. No matter the project delivery method, surety bonds help public agencies assess and minimize their risk.

For more information on the value of surety bonds, visit www.surety.org.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write over 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience.

The Surety & Fidelity Weekly newsletter is published every Monday. The newsletter provides valuable information regarding surety and fidelity industry developments, federal and state legislative activity, legal decisions, new bonding opportunities, regulatory news, upcoming industry events, and much more.

2019: June 10

• Success: SFAA-NASBP Legislative Fly-In
• LSA Spotlight: Surety Association of Ohio
• Texas Legislature Passes ?Right to Repair? Bill for Construction Defects
• Minnesota Repeals Bond Required for Fuel Distributors and Special Fuel Dealers
• Reminder: Call for Data

View older Newsletters

SFAA Bill to Require Bonding for P3s in Indiana on Governor?s Desk

Members should visit Advocacy / What’s New for more information.

Clarifying Bonding Requirements in Missouri Includes Expanding the Payment Bond Obligations

Members should visit Advocacy / What’s New for more information.

Pennsylvania Bill to Amend the Little Miler Act Starts to Move in House

Members should visit Advocacy / What’s New for more information.

Colorado Enacts New Law Requiring Bonding for P3s

Members should visit Advocacy / What’s New for more information.

Arkansas Enacts Contractor License Bond Requirement with High Bond Amount

Members should visit Advocacy / What’s New for more information.

Illinois Alternative Project Delivery Bill Moving with SFAA Bonding Language Included

Members should visit Advocacy / What’s New for more information.

Mississippi Enacts Standards for Requiring Bonding for Private Construction Projects

Members should visit Advocacy / What’s New for more information.

New York Executive Order Imposes Integrity Clause on State Contracts

Members should visit Advocacy / What’s New for more information.

Will Bad Facts Make Bad Law in Oregon?

Members should visit Advocacy / What’s New for more information.

Privatized Military Housing Woes Continue

Members should visit Advocacy / What’s New for more information.

Local Governments Pressuring on State Bond Thresholds

Members should visit Advocacy / What’s New for more information.

States Not Waiting for Congress on Infrastructure

Members should visit Advocacy / What’s New for more information.

U.S. House Committee Marks Up Marijuana Safe Harbor Bill

Members should visit Advocacy / What’s New for more information.

Virginia Establishes Sunrise Process for Occupational Regulations

Members should visit Advocacy / What’s New for more information.

SFAA and APCIA Seek to Address Bonding in Illinois Energy Savings Legislation

Illinois HB 3398, as introduced, would have allowed state construction agencies and public universities to enter into energy savings contract for a period not exceeding 30 years. SFAA and APCIA sought amendments to mirror the Ohio law such that the performance bond shall be for no more than one year, and renewable at the option of the construction agencies for a term no to exceed three consecutive years. The legislators understood that their bill required a bond that may not be available and considered our amendments, but decided to enact an enabling bill instead under which state purchasing officers will be allowed to use energy savings contracts that do not exceed 25 years. If the enabling act gets passed this year, we will need to work on a bonding requirement in the regulations that will be needed to implement HB 3398.

Members should visit Advocacy / What’s New for more information.

Bill Restricting Local Licensing Authority Moving in Florida Legislature

Members should visit Advocacy / What’s New for more information.

Surety & Fidelity Weekly Legislative Report posted for Members

Report is available for Members on the Weekly Legislative Reports page.

Non-Members may purchase these reports by completing a Statistical Report Order Form. Click here for a complete list, description, and release schedule of statistical reports. 

The data used to produce these reports have been compiled by both The Surety & Fidelity Association of America and SNL Financial LC, and is copyrighted by both The Surety & Fidelity Association of America and SNL Financial LC. Reproduction in any form in whole or in part is prohibited without written permission from The Surety & Fidelity Association of America.

The Subscribers to SFAA Fidelity and Surety Case Summaries list has been updated for Members, Claims Advisors and Case Summary Subscribers.

Navigate to Member Services / Claims / Subscribers to Case Summaries.

The Preliminary 2018 Top 50 reports have been posted for Members and Subscribers. Use the following links:  Surety / Fidelity or navigate to Statistics / Statistical Reports: Financial Statement Data / Fifty Largest Writers from the menu.

Non-Members may purchase these reports by completing a Statistical Report Order Form. Click here for a complete list, description, and release schedule of statistical reports.

The data used to produce these reports have been compiled by both The Surety& Fidelity Association of America and SNL Financial LC, and is copyrighted by both The Surety & Fidelity Association of America and SNL Financial LC. Reproduction in any form in whole or in part is prohibited without written permission from The Surety & Fidelity Association of America.

NEWS RELEASE

FOR IMMEDIATE RELEASE
Contact: Bryan Surcouf, Communications Manager
Phone: (202) 778-3629
E-mail: [email protected]

Indiana Passes Surety Bonding Bill for P3 Projects
Bill Provides Additional Protections for Workers, Local Businesses and Taxpayer Money

April 9, 2019, Washington, D.C. – Indiana HB 1374, sponsored by Indiana State Rep. Matt Lehman, headed to Governor Holcomb?s desk for signature on April 8. The bill amends all three of the state?s public-private partnership (P3) laws to require a 100 percent payment bond and a 50 percent performance bond on these types of state infrastructure projects. The Indiana House passed the measure with a vote of 93 to two, while the Indiana Senate passed the measure with a vote of 48 to zero.

?Indiana took an important step to protect workers, small businesses and taxpayer money on P3s projects. We commend the Indiana legislature for recognizing the value of surety bonds,? says SFAA President Lee Covington. ?No other risk management product provides the same comprehensive protection as surety bonds. Thank you to Rep. Lehman, and to all those involved for passing this important piece of legislation.?

P3s provide a new method of financing for public infrastructure projects. A P3 is a way for governments and agencies to access the capital market, but the construction risk remains the same. According to BizMiner, more than one out of four contractors fail. Surety bonds significantly increase the likelihood that a construction contract will be completed, and that subcontractors, suppliers and workers will be paid. No matter the project delivery method, surety bonds help public agencies assess and minimize their risk.

For more information on the value of surety bonds, visit www.surety.org.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write over 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience.

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This guide is designed to serve obligees who may want to verify the
authenticity of surety bonds that they are being asked to accept. The
most reliable way to authenticate a surety bond is to contact the
issuing surety company directly. However, it is often difficult to
ascertain the correct address, telephone number or person to contact at
the surety.

Accordingly, this guide contains a list of SFAA surety
company members that have volunteered to be included together with
information as to how they can be contacted for the purposes of
authenticating a bond. Since participation in this program is voluntary,
not every surety company is listed.