Bond Forms for the City of Live Oak, California

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 Performance Bond and Payment Bond (Bond Forms) that were used on the City of Live Oak (Live Oak) Soccer Park Project (Project), which bid on June 17, 2014. We have reviewed these Bond Forms, and the terms and conditions of these forms give NASBP great concern. The Performance Bond in particular is among the most onerous that we have ever encountered. More specifically, the terms and conditions of these Bond Forms are generally counter to prevailing surety andconstruction industry practices and to the market reputation of Live Oak as a desirable procurer of construction services.

Read more…