Applying lessons from pandemic to future construction projects | PPP loans under $2M on DOJ's radar for fraud prosecutions | Coronavirus outbreaks at stadium construction sites underscore need for PPE, sanitization
July 1, 2020
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Construction contractors can apply the insight they have gained from dealing with the coronavirus pandemic in how they approach future projects, attorneys write. The pandemic has provided lessons regarding due diligence, cash flow issues and the types of disputes that can arise, they write.
Recipients of Paycheck Protection Program loans should not assume that Justice Department enforcement of PPP fraud cases will focus only on loans of more than $2 million, three attorneys write. Companies with PPP loans should follow a set of best practices, including having a strong compliance program, they write.
Continuity Planning: Situations & Lessons From the Field A business continuity plan can help to ensure a smooth transition when a company changes hands. This is especially the case if an owner dies suddenly. A formal plan gives the company's family, employees, and customers… and the surety, assurances that the company will be able to stay in business. Read More…
Football stadium projects across the US have experienced coronavirus outbreaks that have resulted in delays in some cases. Contractors have responded by taking steps such as sanitizing project sites and providing workers with additional personal protective equipment.
The Federal Motor Carrier Safety Administration is working toward a proposed rule that would allow suspensions of truck brokers' operating authority in cases where motor carriers' claims are unpaid. Brokers are required to have a $75,000 surety bond or trust fund, but it can take months for their operating authority to be revoked if that amount is depleted.
Companies that receive loans through the Paycheck Protection Program need to understand the covered period and what payroll costs qualify for forgiveness, an attorney writes. Other considerations include the time frame for submitting forgiveness applications, she writes.
NASBP Blog: Can you use the new "EZ" PPP loan forgiveness application form?
The US Small Business Administration recently issued a revised Paycheck Protection Program loan forgiveness application, as well as a new "EZ" application. This NASBP Blog, by three attorneys from Ruder Ware, reviews all the requirements to use the EZ loan forgiveness application. The authors write that "[w]hat form to use is dependent in large part on the borrower's FTE [Full Time Equivalent] counts during the covered period, and whether there were any reductions in salary/wages during the covered period." It is important for borrowers to consider their full covered period when using their funds, to keep from losing some forgiveness. Read more. To learn more, check out more NASBP Blogs.
Register for the July NASBP Virtual Event -- Being Present and Connecting Surety in a Virtual World
Clockwise from top left: Mendelson, Specht and Mann (NASBP)
Get ready for the next NASBP Virtual Event, from 1 to 3 p.m. Eastern on Wednesday, July 22. Free for NASBP members, affiliates and associates, Being Present and Connecting Surety in a Virtual World will feature a welcome from NASBP President Mark Munekawa and two informative presentations. First, NASBP members Zach Mendelson of EPIC and Mike Specht of Insurica Southwest will unveil the new NASBP Producer Communications Toolkit 2.0. The Toolkit is updated with new guidelines and social media assets to help you talk about surety with stakeholders in this new construction environment. The second portion of the program will feature a keynote presentation from international presenter and trainer Scott Mann of Rooftop Leadership. Mann will focus on how NASBP members can cultivate and develop relationships and connections with clients virtually and also how members can guide clients to be leaders of thriving businesses. Register now!
July 15 NASBP Virtual Seminar -- Current Industry Trends in Overseas Markets
Clockwise from top left: Buckley, Fay, Thompson, Videla, Kim (NASBP)
Don't miss this panel discussion developed by the NASBP and SFAA International Committees! Join us from 2 p.m. to 3:15 p.m. Eastern on Wednesday, July 15, for Current Industry Trends in Overseas Markets: A Conversation with International Surety Market Experts, where panelists will address current surety market trends in today's overseas markets. This 75-minute presentation will explore such topics as varying requirements of suretyship, opportunities in overseas markets, disruption of the raw material supply chain from Pacific Rim countries, and the impact of COVID-19. The discussion will be moderated by NASBP International Committee Chair Sheila E. Thompson of Rosenberg & Parker. The panelists, representing four NASBP affiliates, are: Dekker Buckley of CHUBB-COG Surety; Michael C. Fay of Zurich North America; Gonzalo Videla of Travelers, Bond & Specialty Insurance; and Nicholas Kim of Liberty Mutual Surety. Register for this standalone NASBP Virtual Seminar or register for the NASBP 2020 Virtual Seminar Annual Subscription, the entire set of Virtual Seminars for 2020, and save! This Virtual Seminar is sponsored by Old Republic Surety. Register.
Bond requirements are among a number of key terms that should be required in all construction contracts, two attorneys write. Other vital terms should address scope of work, payment, indemnity and delays, the attorneys write.
There's only one way to succeed in anything, and that is to give it everything.
Vince Lombardi, American football coach, executive
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.