Experts: Transportation funding may spur 3Ps for U.S. road projects | Lawmakers aim to ease Defense Department contracting for small businesses | Surety searches for contractor to finish high school's construction
April 26, 2012
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If Congress passes longer-term transportation-funding legislation instead of more temporary extensions, many public-private partnerships could form to help fund infrastructure work, according to a panel of experts. Federal and local governments face tight budgets, but "there is ample [private] capital available to invest in revenue-backed U.S. infrastructure projects," said analyst Richard Little.
House lawmakers are marking up a defense-reauthorization bill, and they are trying to enhance the process for small businesses to contract with the Defense Department. "Navigating the defense acquisition process is extremely difficult for these small and medium businesses," said Rep. Bill Shuster, R-Pa. One problem is that some defense contracts are too large for small businesses to obtain the necessary surety bonds, a House panel found.
A surety is looking for a contractor to take over construction work on a high school in New Brockton, Ala. The project is almost 70% done, the architects say, but the contract has been terminated with the company that was working on it. The project involves the addition of classrooms and the renovation of part of the building.
The City Council of Benwood, W.Va., has asked a contractor to put up $500,000 to ensure that work on a bridge-demolition project is completed. The city had wanted the contractor to secure a $1 million performance bond for the project, but an attorney for the contractor said the work was "not bondable."
Suppliers to subcontractors are protected by New Jersey legislation that requires general contractors to secure payment bonds, according to a lawyer in the state. If a supplier notifies the surety and general contractor before providing materials, it can make a claim on the bond if necessary, the lawyer writes. Other provisions also can help suppliers in the state, he writes.
NASBP May 15 Virtual Seminar: "Getting up to Speed on ESOPs: What Surety Professionals Need to Know"
Join us for this Virtual Seminar from 2 to 3 p.m. Eastern time on Tuesday, May 15. ESOPs (Employee Stock Ownership Plans) are prevalent in a broad range of industries including construction, where the percentage of ESOP association members is second only to the percentage in the manufacturing industry. With increasing demand for ESOPs as an exit strategy, the more you can understand and can counsel your clients, the better off you'll both be. Elaine Ervin, Wayne D. Fjeld and Dena Herbolich of Moss Adams will discuss the process of entering into an ESOP and the specific implications to the sponsoring company. In addition, presenters will work through examples and follow a transaction from valuation to implementation and explain the effect on the balance sheet and risks to the portfolio. Registration for each Virtual Seminar is $69 per site. Consider inviting your clients to join you at your office when you listen to this informative Virtual Seminar. Register now. If you missed a past NASBP Virtual Seminar, you can buy and download the audio recordings and presentation outlines from the NASBP website.
NASBP Federal Contracting Workshop on June 27 and 28 at Hyatt Regency Washington on Capitol Hill
This timely NASBP workshop offers surety professionals insights into current trends in federal construction procurement, public-private partnerships, joint ventures, teaming agreements, mentor-protégé agreements, Small Business Administration certification and keys to finding federal construction work, as well as a discussion on considerations relating to the False Claims Act. Attend and learn how laws and regulations can positively and negatively affect contractor clients who perform federal work. The presenters, all experts in federal construction contracting, include Martha L. Perkins, Esq.; Robert F. Carney, Esq.; Heather A. James, Esq., of the law firm Whiteford, Taylor & Preston; and Gehrig C. Cosgray, CPA, with Clifton Gunderson. Learn more and register. This workshop will be held at the Hyatt Regency Washington on Capitol Hill in Washington, D.C. The cutoff date for the NASBP special room rate is May 24. Participate in all of the Washington Week events and receive significant registration discounts. Learn more about NASBP's Washington Week.
Rates for property and workers' compensation insurance are increasing, but property/casualty insurers are not yet experiencing a "classic" hard market because other conditions of a traditional hard market are not evident, industry executives say. "There are multiple markets out there," said Eric Anderson, CEO of Aon Risk Solutions, Americas, adding that terms and conditions of insurance coverage "are still very competitive" and that customers are getting the limits they require.
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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Washington, DC 20036