Each State Has a Different Bonding Requirement Concerning P3s

Published: Aug 26, 2014
Employees putting safety first on USACE construction sites
Public projects are increasingly being executed through public-private partnerships (P3s), i.e. a peternship between “a public government agency—which can be federal, state, or local—and a private entity.”. P3s offer some big benefits, such as more available funding and quicker execution of the project.

Each state have their specific methods of regulating P3s and that applies to bonding requirements too. Usually contractors are required to post performance and payment bonds, which make sure the contractor will not default and that subcontractors and suppliers will get paid.

When contractors look for projects, they need to make sure they are aware of all the states’ requirements in order to better calculate costs. For example, North Carolina requires “a payment bond for 100% of the construction value for the project”, while in Colorado just 25% is enough. Keep in mind, however, that sometimes requirements vary even within the states or between the various projects.

To read more about the bonding requirements in P3s, read the full article at Lexology.

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Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.