Deletion of bond requirements on Coxsackie-Athens Central School District

On behalf of the National Association of Surety Bond Producers (NASBP), a national trade association which serves a membership of firms with personnel of over 5,000 surety agents and brokers, including those resident and serving businesses in New York State, I am writing to express our considerable alarm about and concerns over a recent procurement for improvements to Coxsackie-Athens High School, Coxsackie Elementary School, and Arthur Elementary School. More specifically, Addendum Number 2, dated May 24, 2010, to the bidding documents for those improvements provided that the Coxsackie-Athens Central School District would not require performance and payment bonds from the bidder receiving award. It is not clear on what grounds that decision was made; however, NASBP firmly believes that that decision is contrary to applicable statutory requirements and not in the best interests of the school district. Such a decision, in fact, places project risks unnecessarily on the shoulders of taxpayers, who, in the absence of performance and payment bonds, will shoulder the costs of any contractor default.

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