Bond Forms for Santa Ana Unified School District

I am contacting you on behalf of the National Association of Surety Bond Producers (NASBP), a national trade association of surety bond producers, including licensed resident and nonresident producers placing bid, performance, and payment bonds in the State of California and all other jurisdictions. NASBP was recently forwarded a copy of the Subcontractor Faithful Performance Bond (Performance Bond) and Subcontractor Payment Bond (Payment Bond) for use on the Santa Ana Unified School District (SAUSD) Wilson Elementary School New Building Addition and Sitework, Project No. 04-112251 (Project). NASBP has reviewed these Project bond forms, and the terms and conditions of these bond forms give NASBP great concern. We firmly believe that very few, if any, sureties that review these bond forms will write such bonds. Indeed, the Performance Bond is one of the most unworkable bond forms that we have ever seen. The bond terms and conditions are counter to prevailing surety and construction industry practices and to the market reputation of SAUSD as a desirable procurer of construction services.

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