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According to W. Barron A. Avery and William "Liam" B. O'Reilly, "Contractors cannot always trust that government contracting officials have used the correct forms, or cited the correct clauses, when soliciting goods and services. As a consequence, contractors should maintain constant vigilance for potential government errors or omissions in solicitations that could impact contractors’ ability to perform. Failure to do so could result in substantial unexpected costs down the road, rendering contracts difficult – or even impossible – to perform." Read Barron’s and Liam’s alert published by BakerHostetler LLP and titled “FAR Clauses Are in the Contract Whether ...
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As of November 5, 2018, the population of the United States was more than 328 million, based on projections from the U.S. Census Bureau. And there’s no sign that growth will stop anytime soon. After all, when factoring in the various components of population change—births, deaths, and migrations—there’s a net gain of one person every 14 seconds  in our country. As the U.S. population booms, housing supply must keep pace. Faced with increased development, some local governments are requiring subdivision bonds to guarantee contractors meet their performance obligations. “Subdivision bonds generally guarantee public or private work improvements to a city ...
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Read about the impact of the Narula reverse False Claims Act decision on bonding set-aside contracts in the Surety Claims Institute newsletter article by Armen Shahinian of Chiesa Shahinian & Giantomasi PC , who serves on the NASBP Attorney Advisory Council .   Armen Shahinian, Esq. Chiesa Shahinian & Giantomasi PC One Boland Drive West Orange, NJ 07052 973.530.2002 (NYC phone: 212.973.0572) ashahinian@csglaw.c
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The Executive Director of CICPAC , Kathleen J. Baldwin, CPA, CCIFP, has described CICPAC's  “Revenue Recognition Implementation Guide -- Guidance for CPAs and Construction Companies, " for NASBP and its membership. NASBP: When did CICPAC release the Guide? Baldwin: CICPAC released the Guide on March 28, 2018. NASBP: Why did CICPAC create this Guide?   Baldwin: At the time of the Guide’s release, most articles and material published to date focused solely on the definition of the new FASB revenue recognition standard. CICPAC wanted to compile a document focused on the aspects of the new standard that were most pressing to the construction industry. ...
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Teaming agreements are an integral component of government contracting, providing prime contractors and potential subcontractors the ability to team on federal projects in advance of a contract award and make both parties more competitive for award. Attorneys W. Barron A. Avery and William “Liam” B. O’Reilly comment on recent developments in state law that impacts the enforceability of these teaming agreements. Read Barron’s and Liam’s alert published by BakerHostetler LLP and titled “Teaming Agreements Under Fire: Decision Chips Away at the Enforceability of Teaming Agreements.” W. Barron A. Avery, Esq. BakerHostetler LLP wavery@bakerlaw.com ...
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It’s no secret that the U.S. is in desperate need of funding to repair its crumbling roads, bridges, highways, railways, and waterways—and that’s why many Americans waited with bated breath for the White House to release its infrastructure plan in February. When the highly anticipated $1.5T plan was released, however, it set aside only $200B in federal spending for infrastructure repairs, leaving the remaining $1.3T to states, localities, and private investors. One way some government entities may seek to bridge this gap is through the utilization of public-private partnerships, or P3s, as a procurement mechanism. “The federal dollars that many states and ...
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NASBP CEO   Mark McCallum   is quoted (page 9) in the new ConsensusDocs publication, "Standardized Contracts: Streamlining Projects in Today's Fast-Paced Construction Market." To download the new publication, complete the form here: https://consensusdocs.org/FooterSection_About/standardizedcontra
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The U.S. Small Business Administration just announced the first fee decrease in Surety Bond Guarantees in 12 years. The fee decrease will be in effect for guaranteed bonds approved during fiscal year 2019, taking effect October 1, 2018 and ending September 30, 2019. The Surety Bond Guarantee (SBG) program is reducing the Surety fee from 26 percent to 20 percent of the bond premium charged to the small businesses and reducing its contractor fee from $7.29 per thousand dollars of the contract amount to $6.00 per thousand dollars of the contract amount. “Reducing the SBG program fees will not only directly help small businesses, but also will incentivize surety ...
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Most construction contracts require that any changes to the work be made formally, in writing, but sometimes things are done verbally. This article explores some practical tips on how to handle verbal change directives when the contract specifies that all changes must be documented by a written change order or change directive. Read Todd’s article published in the Smith Currie 2018 Common Sense Contract Law newsletter, titled “Can’t Get a Written Change Order? Document, Document, Document.” Todd M. Heffner, Esq. Smith Currie & Hancock LLP tmheffner@smithcurrie.com 404.582.814
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The Public Relations Power Bond Producers Gain by Promoting Financial Literacy This is the second in a three-part series on how NASBP bond producers are uniquely situated to ensure success and growth for small contractors. There is a vast and unmet need for better financial literacy education in the United States. According to a February 2015 study by the American Psychological Association, 72 percent of Americans said they feel stressed about money “at least some of the time,” 64 percent said money is a “somewhat” or “very significant” source of stress, and 22 percent said they experienced “extreme stress” about money. Stephen Freeman, Vice President, ...
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An Invaluable Partnership: How NASBP Bond Producers Help Ensure Success and Growth for Small Contractors This is the first in a three-part series on how NASBP bond producers are uniquely situated to ensure success and growth for small contractors. For small contractors looking to build a solid foundation for business growth, a strong understanding of the contract surety bond process is essential.    Though the process of obtaining a bond may be new to a contractor that only performs private work, NASBP bond producers   are uniquely qualified to help entrepreneurs and small business owners understand the bond process and increase their ...
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Why You Should Pursue an AFSB Designation: NASBP Members Weigh In Looking to turbocharge your surety career? The Institutes’ Associate in Fidelity and Surety Bonding (AFSB) designation  may be just the ticket. Launched in 1991 through a strategic alliance between NASBP and the Institutes, the AFSB was designed to help surety professionals better serve their clients through professional education related to risk management and insurance. The Institutes is the leading insurance education provider for the risk management and property-casualty insurance industry. Today, the partnership continues to provide opportunities for surety bond professionals to ...
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David Anderson: “How I Hacked a Construction Company” David Anderson is a featured speaker during the NASBP Annual Meeting & Expo   on Tuesday, May 1, at 10:45 a.m.  As anyone in the surety industry knows, success in construction is all about risk management. But in today’s digital-centric world, potential threats extend well beyond the construction site. David Anderson knows this for a fact, because hacking into construction companies is part of his job as Manager, SAS Information Security, at CliftonLarsonAllen of Minneapolis. “Our group performs these simulations for several organizations every week,” said Anderson, who has been with CliftonLarsonAllen ...
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Five Important Risk-Shifting Provisions Bond Producers and Their Construction Clients Should Be Aware Of​ Whether you are a bond producer, owner, contractor, or subcontractor, success in the construction industry is largely an exercise in risk management—and construction contracts serve as a powerful tool to allocate those risks across parties. That is why it is so important to understand their intricacies. We asked Scott Walters , an attorney at the law firm of Smith, Currie & Hancock LLP and a participant on the NASBP Attorney Advisory Council , to weigh in on common risk-shifting provisions within construction contracts. Here are five clauses he ...
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Canadian Study Verifies Surety Protection Has Economic Value On Dec. 5, 2017, Bill 142 passed unanimously in the Ontario Legislature, requiring public construction work to be protected by performance and payment bonds. The bill, which was fully supported by the Surety Association of Canada and other industry stakeholders, serves to modernize payment protocols in Ontario’s Construction Lien Act. “We’ve just been successful in introducing mandatory bonding into Ontario and want it to be introduced nationally,” Steve Ness, President of the Surety Association of Canada (SAC), said. Earlier last year, the Surety Association of Canada commissioned The Canadian ...
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U.S. Rep. Nydia Margarita Velázquez: Giving a Voice to Small Business Owners ​ In the 25 years that U.S. Rep. Nydia Margarita Velázquez (D-NY 7th) has served in Congress, her priority has always been to ensure that small business owners and hardworking Americans have a fair shot at the American Dream.   “Every day, I have the privilege of being a voice for New Yorkers from diverse backgrounds,” Velázquez said. “Interacting with constituents and helping them is the most rewarding part of my job.”   As a Ranking Member of the House Committee on Small Business, Velázquez’s work involves advocating for America’s 30 million small businesses ...
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​ In response to NASBP member requests for information about states prohibiting directed suretyship, NASBP has released its Survey of State Anti-Directed Surety Statutes   information map.   The map is the latest in a series the Association has produced to provide Members, Affiliates, Associates, and their clients information on local legislative activity, governmental initiatives, and other resources—right at their fingertips.   With bond producers often working in multiple states and impacted by various statutes, things can get confusing quickly. “A lot of the work our members do is state-level work, and all the different public ...
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In just a decade since its 2007 inception, ConsensusDocs —which publishes standardized contracts written for and by those in the construction industry—has experienced sustained growth beyond expectations. “We doubled the stakeholders involved with ConsensusDocs (from 20 to 40), formalized organizational rules establishing how everyone must act fairly, quadrupled subscriptions using the documents, and established several industry-first standard contract documents—such as Integrated Project Delivery (IPD) and Building Information Modeling (BIM)—that are literally driving industry improvements,” said Brian Perlberg, Executive Director of ConsensusDocs . As ...
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   After working in the industry for more than 30 years, most recently serving as Executive Director of the Construction Industry CPAs/Consultants Association (CICPAC), John Corcoran has started his semi-retirement. Born in the Chicago area, Corcoran passed the notoriously difficult CPA exam in 1969, receiving certification in Illinois before moving to Arizona in 1972 to work in public accounting. In 1984 Corcoran accepted a position as CFO of a construction company, where one of his major responsibilities involved communication with those in the surety field. It was then that he discovered the joy of working with people in the construction/finance space. ...
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The American Institute of Architects (AIA) recently released the 2017 edition of its key agreements in the A201 family of documents. These design-bid-build agreements, updated every ten years to reflect the evolving construction industry, are universally seen as an industry standard and have crucial implications for surety bond professionals.   “The 2017 release included several revisions to AIA’s flagship document, the A201 General Conditions to the Contract For Construction ,” Kenneth Cobleigh, Esq., Managing Director and Counsel of AIA Contract Documents, said. “In addition, there were a number of revisions made to the A201-related owner-contractor ...
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