Surety bond requirements safeguard investments in current, planned construction projects | Construction projects restricted in some states; 3 not permitting any work | 2 contractors file suit accusing Minn. city of exceeding authority by halting project
April 15, 2020
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Leading News
Surety bond requirements offer protection for investments in current and upcoming construction projects, two attorneys write. Owners should closely examine performance bonds that contractors have supplied, both before a project starts and at the initial sign of any problems, they write.
Full Story: The National Law Review/Ward and Smith (4/7) 
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Construction projects restricted in some states; 3 not permitting any work
(Ethan Miller/Getty Images)
Construction is subject to local restrictions in some states, while all projects have been placed on hold in at least three states: New York, Pennsylvania and Washington.
Full Story: Engineering News-Record (tiered subscription model) (4/12) 
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Surety Agents and Sureties Can Help Small Contractors Manage Risk
Before bidding on jobs or signing contracts, small contractors should get expert information from surety agents and sureties on how to reduce risk. Working together, they can examine and mitigate possible risks from owners, general contractors, contract language, suppliers, labor issues, materials availability and pricing, weather, thieves and safety practices. Learn more here
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Industry News
Two construction contractors are suing the Minneapolis suburb of Brooklyn Center after the companies' construction projects were placed on hold because of concerns about the coronavirus. The contractors allege that the city is applying "inconsistent rules" because a proclamation from the mayor specifically halts their project and supersedes a directive from the governor.
Full Story: Star Tribune (Minneapolis-St. Paul, Minn.) (tiered subscription model) (4/10) 
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A surety has been released from its bond liability to a bankrupt contractor that had been working on an erosion-control project in Morristown, Tenn., although the cost of work remaining to be done is in dispute. The city estimates the cost of the remaining work at $750,000, but the surety says the amount should be lower.
Full Story: Citizen Tribune (Morristown, Tenn.) (4/10) 
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Risk & Compliance
Contractors looking to recover increased costs stemming from coronavirus-related delays should consider measures other than invoking force majeure provisions, three attorneys write. Change-in-law provisions, emergency provisions and change order provisions are among other potential remedies, they write.
Full Story: Constructlaw (4/9) 
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Association News
NASBP Blog: Stop work orders and construction project site abandonment series -- Part 1
NASBP Blog: Stop work orders and construction project site abandonment series -- Part 1
Kelley, left, and Rogers (NASBP)
Due to the coronavirus pandemic, some construction project owners have begun issuing stop work orders and closing projects down during an uncertain time period. Inconsistencies in treatment and messaging, however, are leaving many people and businesses confused about how to respond. Michael Kelley and Maureen Rogers of the law firm Shutts & Bowen explain what you -- whether you are an owner, contractor, designer, trade, insurer or finance provider -- need to do to protect yourself and others. Learn about stop work orders in Part 1 and construction project site abandonment in Part 2.
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April 21 NASBP Virtual Seminar: Panel discussion on financial repercussions of COVID-19
April 21 NASBP Virtual Seminar: Panel discussion on financial repercussions of COVID-19
(NASBP)
Join us for a special 90-minute NASBP Virtual Seminar at 2 p.m. Eastern on Tuesday, April 21. "The Financial Implications of COVID-19 on the Bonded Project" brings together a diverse group of panelists to discuss the ramifications of COVID-19 on bonded construction projects and perspectives of a surety, bond producer, lender and contractor. They also will offer tips on how to manage the complex issues raised. Register for this stand-alone Virtual Seminar or register for the NASBP 2020 Virtual Seminar Annual Subscription, the entire set of NASBP Virtual Seminars for 2020, and save! This NASBP Virtual Seminar is sponsored by Old Republic Surety. Register.
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New episode of NASBP podcast "Let's Get Surety" takes a closer look at force majeure clauses
New episode of NASBP podcast "Let's Get Surety" takes a closer look at force majeure clauses
Zisa (NASBP)
The NASBP podcast "Let's Get Surety: Let Me Hear Your Bonding Talk" is back with a new episode! In episode six, "Taking A Closer Look at Force Majeure Clauses in Today's Environment," host Kat Shamapande and co-host Mark McCallum talk with guest Mike Zisa, chair of the Surety and Construction Related Insurance Defense Practice Group at Peckar & Abramson. Zisa describes force majeure clauses, contract review, documentation, and issues that surety professionals and their contractor clients may face during the COVID-19 pandemic. Access this and other "Let's Get Surety" episodes from any of these systems: Apple Podcasts, Google Podcasts, Spotify, Stitcher, or SuretyLearn. Be guaranteed to succeed!
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Trends & Technology
Before the coronavirus outbreak, 23 states allowed documents to be notarized remotely online, and now at least 19 others have jumped in on an emergency basis. There is also a trend toward permitting e-signatures, but certain sectors, such as real estate, are clinging to the "wet ink" standard of in-person appearances.
Full Story: Bloomberg Law (free content) (4/10) 
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Opinion Poll
How long will it be before the construction market begins to recover?
One to two months
 15.79%
Two to four months
 47.37%
Four months or longer
 26.32%
Not sure
 10.52%
POLL QUESTION:
Are construction contractors receiving adequate assistance via Paycheck Protection Program loans?
VoteYes, many are
VoteYes, some are
VoteNo, most aren't
VoteNot sure
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Sometimes a wind comes up, blows you off course. You're not ready for it, but if you're lucky, you end up in a more interesting place than you'd planned.
Nora Roberts,
writer
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About NASBP
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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National Association of Surety Bond Producers
7735 Old Georgetown Road, Suite 900
Bethesda, MD 20814

Phone: 240-200-1270
Fax: 240-200-1295

info@nasbp.org
www.nasbp.org
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