Surety Update

What a difference 12 months make! In the late spring of 2000, the news was the continued profitability of the surety business with expectations that, as long as the construction economy continued to grow, conditions in the surety market would continue to be favorable...

Bid Bonds on Federal Contracts – Just the Fax

Bidders on most sealed-bid federal contracts are required to furnish a bid guarantee along with their bids. The bid guarantee is usually provided in the form of a bid bond issued by a Treasury-listed surety company. The purpose of the bid bond is to guarantee the...

Surety Fails to Pay on Bond for Default Termination

When the U.S. Government terminated a contractor for failure to perform in accordance with the contract provisions, the contractor’s surety asserted that the termination was wrongful and refused to pay on the performance bond.  After much litigation it was held...

Surety Hit with Substantial Punitive Judgment

Sureties play a vital role in public construction projects.  As a result, many states have enacted statutory guidelines regulating how insurance companies and sureties administer claims made on their policies or bonds.  Massachusetts is one such state that has enacted...