Court rules for surety in case involving energy firm's bond obligations | Federal contractors may not be entitled to additional costs related to pandemic | Decision highlights need for strict adherence to Miller Act
July 8, 2020
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Targeted news for surety, construction, and allied professionals
A decision affirmed by a federal appellate court requires an energy company's partial owner to pay a surety $1.25 million in collateral security, plus attorneys' fees and pre-judgment interest. An indemnity agreement required the partial owner to pay bond premiums and provide collateral security if the energy company failed to adhere to its bond obligations.
The US Civilian Board of Contract Appeals ruled that a contractor on a project in Africa was not entitled to additional costs stemming from an Ebola outbreak. The decision could mean that federal contractors will not be able to recover additional costs resulting from the impact of the coronavirus pandemic, an attorney writes.
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…
A federal appeals court has upheld a lower court decision that a subcontractor working on a US air base in Qatar provided untimely notice of nonpayment under the Miller Act. The decision "underscores the importance of strict adherence" to the law's requirement that such notice must be provided within 90 days of the final day of work, attorneys write.
Technological advancements are among the factors that have fostered more construction opportunities internationally. However, such projects can also pose increased risk, and companies should be especially proactive in assessing risks such as the possibility of nonpayment during the coronavirus pandemic, two attorneys write.
Suicide-prevention strategies are crucial in the construction industry, in which more than 15 suicides occur daily, a rate that is four times the national average, an executive writes. NASBP is a stakeholder in the Construction Industry Alliance for Suicide Prevention.
NASBP Blog: Gain powerful tools and guidance at NASBP July 22 Virtual Event
Read this NASBP blog for all the details on the NASBP July Virtual Event -- Being Present and Connecting Surety in a Digital World. This free event for NASBP members, affiliates and associates will be held from 1 p.m. to 3 p.m. Eastern on Wednesday, July 22. The program will offer two sessions designed to help you and your business succeed in the new normal. Register for the Virtual Event. Read more. To learn more, check out more NASBP blogs.
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.
NASBP podcast "Let's Get Surety" reviews the latest PPP update
The Justice Department has charged at least 15 people accused of Paycheck Protection Program fraud, and PPP loans are likely to face even tougher scrutiny, two attorneys write. Certain charges in PPP loan fraud cases have a 10-year statute of limitations, "providing federal law enforcement agencies plenty of time to build cases," the attorneys write.
A master can tell you what he expects of you. A teacher, though, awakens your own expectations.
Patricia Neal, actress
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.