Directed surety occurs when owners designate a specific producer or surety company from which contractors must obtain surety bonds for a specific project or series of projects.

Who prohibits directed suretyship?

  • The federal government prohibits directed suretyship on federal projects.
  • 42 states have statutory prohibitions against directed suretyship.

The state Anti-Directed Surety Statute citation is shown below. A version of this resource in chart form is available here.

W. Va. Code § 5-22-1(i) (State and subdivisions)

                               W. Va. Code § 5-22A-10 (9) (design-build)

                               W. Va. Code § 38-2-39 (Institutions)

For more information, contact Larry LeClair.

Topic
Advocacy
Publish Date
November 6, 2024
Region
West Virginia
Audience
Agents, Contractors, Owners, Sureties
Resource Type
Anti-Directed Surety Statutes, Resource Map