Firm: "Lottery" would nix bond requirement for towing in Ariz. city | General liability policies might not cover faulty workmanship in Pa. | Company fails to submit bid bond with fuel contract proposal
December 6, 2012
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Industry News
Firm: "Lottery" would nix bond requirement for towing in Ariz. city
The City Council in Mesa, Ariz., has drawn scrutiny over its proposal to use a lottery system to provide work to towing companies in the area. The proposal would eliminate the requirement that companies have a performance bond, according to one towing company. A city official said that the proposal runs afoul of state law, which means the city will have to consider alternatives. The Arizona Republic (Phoenix) (tiered subscription model) (11/30)
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General liability policies might not cover faulty workmanship in Pa.
A judge in Pennsylvania has determined that insurance companies can refuse to cover builders for claims related to allegations of faulty workmanship. That means builders in the state should work with their professional advisers to manage risk, according to the attorney who wrote this article. (free registration) (11/27)
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Company fails to submit bid bond with fuel contract proposal
A Merced, Calif., company says it was not awarded a fuel contract with Merced County because the firm lacked a $1,500 bid bond. Three of the five companies that sought the contract were deemed "non-responsive" because they did not submit the required bid bond with their proposals, according to this article. The winner of the six-figure contract was a company based in Georgia. Merced Sun-Star (Calif.) (12/5)
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Feds' acquisition forecasts offer contractors insight into projects
Companies interested in doing business with the federal government can get a leg up on competitors by researching federal acquisition forecasts, which can be accessed for free online, according to this blog post. The way the information in these forecasts is presented varies depending on the agency. Some make the forecasts available for download, while others have set up databases to simplify the search process. American City Business Journals/Washington, D.C./FedBiz Daily blog (12/4)
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Other News
Policy Update
Judge: Agency isn't required to give veterans contracting preference
A federal judge has determined that the Department of Veterans Affairs doesn't have to give preference to small veteran-owned contractors in all cases. The judge found that a 2006 law doesn't preclude the agency from working with vendors with which it has pre-existing agreements. The case was brought by a Maryland company and received the support of the Government Accountability Office. Bloomberg (11/29)
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Association News
Be sure to register for both of these NASBP Virtual Seminars, set
for Dec. 7 and 18

At 2 p.m. Eastern time Friday, join us for the complimentary Virtual Seminar "News from the SBA: Successes, Initiatives, and Future Plans," with Director of the U.S. Small Business Administration Surety Bond Guarantee Program Frank Lalumiere, who will describe recent changes to the SBA program and plans for 2013. Lalumiere will be joined by NASBP members Joshua Etemadi of Construction Bonds, a division of Murray Securus, and Michael Williams of CCI Surety, who will share ways the SBA program can be used effectively to help clients and to increase surety premiums.

Then, be sure to join us at 2 p.m. Eastern time on Tuesday, Dec. 18, for the NASBP Virtual Seminar "Financial Guaranty Insurance and Bonds." NASBP member Lynne Cook of Early, Cassidy & Schilling and NASBP affiliate Rosemary Quinn of CNA Surety will describe how surety professionals can establish financial guaranty insurance and bonds as a sustainable line of business. In addition, Cook and Quinn will describe how to comply with the New York Financial Guaranty Insurance Law and the New York Appleton Rule, which impact insurers in many states -- not just those domiciled in the state of New York. Consider inviting all of your staff to listen to NASBP Virtual Seminars. Visit to register for these Virtual Seminars now.

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NASBP new online Contract Surety Fundamentals course -- submitted for CE approval in all states
NASBP's newest online course, Contract Surety Fundamentals, provides a comprehensive introduction to contract surety. The course, written by leading surety professionals and industry experts, provides new surety professionals the fundamental principles of contract surety they must know. The course topics include Overview of the Construction Industry, What Is Surety?, What the Surety Looks for in a Contractor, Miscellaneous Bonds, Construction Procurement and the Roles of Those Involved, Bond Claims, Other Services of a Surety, Special Concerns of Sureties, Popular Misconceptions, and the Role of the Professional Surety Bond Producer. Contract Surety Fundamentals is available on the NASBP website through the state-of-the-art WebCE training platform. NASBP has applied for continuing education (CE) credit for the course in all states and the District of Columbia with the anticipation that most states will consider and assign CE credit hours for the course by the end of 2012. To register and to see the 31 states that already have approved the course for CE credit, visit This course is available as a training course for anyone at any time. Please note that if you take the course for training purposes and later wish to receive continuing education credits for it, you will have to repurchase the course. Visit for more details.
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Market Trends
Md. panel seeks bill requiring natural-gas drillers to post bond
The Marcellus Shale Safe Drilling Initiative Advisory Commission in Maryland has agreed that the state should set a minimum amount for performance bonds that would be supplied by companies that engage in hydraulic fracturing. The commission, which will hold its next meeting in January, is set to create a report for the state's governor in 2014. Cumberland Times-News (Md.) (11/30)
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Why always 'not yet'? Do flowers in spring say 'not yet'?
Norman Douglas,
British writer
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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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