FAA denies US territory's bond-waiver request for airport runway | Update to SBA bond program might boost sureties, small contractors | S.C. county alleges defects, sues courthouse contractor and surety
September 20, 2017
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Targeted news for surety, construction, and allied professionals
The Federal Aviation Administration has rejected American Samoa's request for a performance-bond waiver for runway rehabilitation at the airport in the capital. American Samoa's governor says the waiver is necessary for local companies to bid on the project, but federal officials say a bond safeguards the territorial government from incomplete work.
The Small Business Administration is raising the maximum percentage of losses it guarantees on smaller projects and for disadvantaged businesses to 90% from 70%. The change could increase sureties' participation in the program, which would give certain small contractors a better chance of securing bonding and gaining contracts.
The Dorchester County, S.C., Council has sued a contractor and a surety, alleging construction defects at a courthouse. The lawsuit says the defects are so numerous they amount to default on the contract.
A federal judge has ruled New York City can require car wash owners to obtain a $150,000 surety bond to offer protection in case of wage-theft judgments as long as the requirement applies equally to union and nonunion car washes. The judge previously ruled against the law because its bond requirement for unionized car washes was lower, at $30,000.
Companies contemplating a joint venture with a competitor have myriad factors and risks to consider. Questions include which company speaks for the joint venture, which company has signature rights, how books are kept, and how indemnity and dispute resolution are handled.
NASBP's self-paced continuing education course Joint Ventures in Construction is ready when and where you are from any computer or mobile device. A joint venture, or JV, is a partnership between one or more businesses to take on a commercial enterprise. JVs have been used in the construction industry for years but have become increasingly common as projects continue to become larger, more complicated and more specialized. While the opportunities presented by JVs are enticing, contractors, bond producers and sureties providing bonds to the joint venture must understand and carefully consider a number of factors before taking the leap into the world of joint ventures. The registration fee is $75. For more information on the course, visit NASBP's website and check out the NASBP Surety Bond Quarterly magazine article. Register.
In just a decade since its 2007 inception, ConsensusDocs -- which publishes standardized contracts written for and by those in the construction industry -- has experienced sustained growth beyond expectations. NASBP was one of the first organizations to join the coalition. Read more at the NASBP Blog.
Plan to attend the 2017 NASBP Regions 8, 9, 10 & 11 Meeting from Oct. 22 to 24
Due to the impact of Hurricane Irma on the Southeast, the NASBP Regions 8, 9, 10 & 11 Meeting has been rescheduled for Oct. 22 to 24. NASBP asks that NASBP producer members and affiliates consider supporting this meeting by making plans to join NASBP at the Hilton Sandestin Beach Resort in Miramar Beach, Fla. The special NASBP beach-view room rate is $199 plus taxes. Direct questions about the upcoming meeting to firstname.lastname@example.org. For more information and to register for the meeting, visit NASBP's website. We hope to see you in October.
The construction industry focuses on best practices when facing the aftermath of major disasters, such as hurricanes Harvey and Irma, attorneys write. A key practice contractors should follow is to notify sureties and lenders of issues to prevent the emergence of late-notice defenses, the attorneys write.
All successful people have a goal. Not a fuzzy, indefinite objective, but a sharp, clearly defined, specific goal. No one can get anywhere unless he knows where he wants to go and what he wants to be or do.
Norman Vincent Peale, writer and minister
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.
National Association of Surety Bond Producers
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