More States Gain Surety Freedom
NASBP launched this initiative last year because of growing concerns about directed surety proposals that were presented to public owners for public construction projects.
Under directed surety programs, contractors are required to obtain bonds from designated sureties. According to NASBP, this requires contractors to provide detailed personal information and business financial information to surety producers or companies other than their own for the sake of a single project.
“Limiting a contractor’s ability to use its regular surety producer and company interferes with competitive bidding and runs contrary to the existence of a free and open marketplace. Passing laws, state-by-state, was the only answer,” said NASBP’s past president, James C. Pateidl.
For more information, go to www.nasbp.org (website).
Publication date: 07/16/2001