NASBP-logoStay up to date on all things surety-related with the NASBP SmartBrief, news targeted for surety professionals. Click here to read the complete SmartBrief presented by NASBP. Here are some of the top news headlines:

Analysis: Bonds are needed on P3s to provide payment remedies for subs

State laws enabling public-private partnerships range widely, from states that require prime contractors to post bonds ensuring that their subcontractors and material suppliers will be paid to those states that require no bonding or payment security, according to NASBP research. In addition, some states require surety bonds for specific P3 projects. Bonding on such projects is necessary to provide a payment remedy for subcontractors and other “downstream parties,” said NASBP CEO Mark McCallum. Read more in Engineering News-Record/Critical Path blog

Judge: Brochure contained deceptive information on individual-surety premium refunds

A federal judge has ruled that Virginia’s false-advertising law allows a federal contractor to recover a $138,000 premium it paid to an individual surety. The statute had not previously been applied in a business-to-business dispute. The judge ruled that the individual surety’s marketing brochure was deceptive and misleading with regard to its refund policy. Read more at Law360.com (subscription required)

Official: Contractor “manipulated and circumvented” Port Authority’s MWBE program

A contractor will pay $3 million to resolve a federal lawsuit alleging that the company falsely represented a subcontractor as a minority-operated business while working on the $3 billion World Trade Center Transportation Hub. The subcontractor was a shell company that allowed the prime contractor to avoid fulfilling rules on the use of minority-owned firms in public projects, prosecutors said. “This investigation has shown how individuals in the construction industry have manipulated and circumvented the intent of the [Port Authority of New York & New Jersey’s] Minority and Women’s Business Enterprise Program,” the Port Authority’s inspector general said. Read more in the Daily News (New York)

Surety asks to be kept apprised of La. library project

The surety for a contractor that worked on a library roofing project in Thibodaux, La., has asked to remain informed on developments with the project’s contractor, who says he wants to examine the leaks that library staffers have reported. The roof had been leaking before the contractor was hired to make extensive repairs, but is leaking worse now that the work has been done, although it is not considered complete, library officials said. The contract for the roof expired May 5. Read more in the Daily Comet (Thibodaux, La.)

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