Failed nuclear construction projects reveal unfinanced risks, broken promises | Meeting with surety agent among ways contractors can effectively manage growth | Insurers have growing role in helping contractors manage loss control
November 15, 2017
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Targeted news for surety, construction, and allied professionals
A former procurement quality-assurance manager with a key subcontractor on a failed nuclear plant project in South Carolina says he encountered problems, including lack of communication, lax oversight and design mistakes, which all helped to doom the project. Those problems highlight the nuclear power industry's unfinanced risks and the unfulfilled "glittering promise" that modular design could revive the sector.
The commercial construction market is expected to grow over the next several years, and contractors must be proactive to harness their opportunities, an insurance executive writes. Meeting with a surety agent to examine whether bonding lines need to be expanded is one way contractors can effectively deal with growth, the executive writes.
Insurers are increasingly involved in helping contractors with improving safety and managing loss control. Among the ways insurers can further help enhance health and safety are to collaborate on new technologies for worker training and to offer their services to trade contractors, a construction insurance executive writes.
An Alberta court found that a surety could be held liable for loss of income caused by a principal if such a liability can be determined from the terms of the contract. The ruling pushes sureties' liability above just the "bricks-and-mortar" costs when a contractor is in default, a law firm notes.
A law that recently went into effect in New Jersey requires real estate appraisal firms to obtain a $25,000 surety bond to obtain and maintain their licenses. At least 20 other states require appraisal firms to post bonds, a surety executive writes.
Nov. 28 NASBP Virtual Seminar: Drones Take Flight in the Construction Industry
Join NASBP for this NASBP Virtual Seminar at 2 p.m. Eastern on Tuesday, Nov. 28. Drones are becoming increasingly important for businesses of all types and sizes. Many drone applications already exist, but many more will certainly arise over the next few years. Presenter Jonathan R. Hausner, a member of the construction group of the law firm of Robinson + Cole, will describe how drones can collect valuable data and increase productivity, safety and efficiency across all industries. He will explain the Federal Aviation Administration's Part 107 regulations, enforcement actions, voluntary best privacy and security practices, and how surety professionals' construction clients can comply with these regulations and practices. This Virtual Seminar is available to non-members for a registration fee of $179; the member fee is $89. Register.
This holiday season, consider the gift of a donation in honor of our veterans
The holidays are about the concept of giving. In the business world, we often express gratitude to our customers by sending a gift, such as food or flowers, as a seasonal expression of appreciation. This year, consider making a donation to the Research and Recognition (R&R) Project on behalf of your customers to help veterans affected by post-traumatic stress. Show your customers that you care about others and want to give in a way that can make you and your customers feel good, while providing the means for a life to be transformed. In this season of healing and giving, a donation to the R&R Project is a triple win -- for your customers, you, and most importantly, a veteran. Make donations at the NASBP GoFundMe page for the R&R Project, and then share the page through LinkedIn and Facebook.
The construction and insurance industries are historically fairly risk averse but are starting to embrace innovation, an insurance executive writes. Much of the innovation in both industries is coming from startup companies, while some major insurers are introducing venture capital efforts, he writes.
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.
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