The National Association of Surety Bond Producers (“NASBP”) is a national trade association of professional surety bond producers, representing firms employing licensed resident and nonresident producers placing surety bonds on contracts in the State of Missouri and in other jurisdictions. Changes to the University’s standardized contract language addressing bonding requirements recently have been brought to our attention. More specifically, new language calls for the owner to be notified by the contractor in writing “of all communications with the surety.” We believe this is an unwarranted intrusion in the confidential business relationship between the contractor and the surety and that such a change in requirements ultimately will not inure to the benefit of the University of Missouri-Columbia.
Project Owners Beware – Don’t Eliminate Prime Bonds in Favor of Dual Obligee Status on Subcontract Bonds