Concerns Regarding Consideration of Alternative to Statutorily-Required Bonds in RFQ

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 New Hampshire and in other jurisdictions throughout the United States and its territories. A stipulation in a Request for Qualifications/Proposals, USNH RFQ/P #11039-0001, addressing construction management services in connection with Rhodes Hall Nursing Laboratory at Keene State College recently has come to our attention and has caused concern. Of specific concern is a provision, numbered 6.9.2, found on page 8 of the RFQ/P, which states that USNH will consider accepting an alternative insurance product in place of statutorily-required performance and payment bonds. Provision 6.9.2 reads: ‘In lieu of “conventional” payment and performance bonds, the University will consider accepting Subguard® as provided by Zurich Insurance Company.’ We find this stipulation to be problematic on a number of practical and legal bases.

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