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 Commonwealth of Virginia and all other jurisdictions, I am contacting you regarding the proposed new Section 105.20, Department’s Recovery Rights After Final Payment, in the Construction Division Road and Bridge Specification Book 2014 (R&B Spec Book). NASBP has concerns about Section 105.20, as there appears to provide no time limitations on the ability of the Virginia Department of Transportation (VDOT) making a claim against a contractor or its surety. Section 105.20 provides, in relevant part, as follows:
After making final payment, if the Department discovers that the contractor performed unacceptable or unauthorized work, used unacceptable or unauthorized materials, or the work is in any way defective due to the Contractor’s fault, breach of contract, or neglect, the Department can demand that the Contractor, his surety, or both remove and replace the unacceptable, unauthorized, or defective work or materials.
Resident Agent Countersignature Requirement for the City of Alexandria, VA