Explore NASBP’s feedback to enhance WV contractor prequalification and bonding requirements, aiming to improve industry standards and contractor compliance

I wish to make you aware of concerns of the National Association of Surety Bond Producers (NASBP), a national trade organization of professional surety bond producers, whose membership includes firms employing licensed surety bond producers placing bid, performance, and payment bonds throughout the United States, including Vermont, regarding incentive/disincentive (I/D) periods and liquidated damages that appear in the Bid Solicitation for the Rochester Bridges Project (Project). In the opinion of NASBP, the excessive liquidated damages are overreaching and will stifle competition for small and midsized Vermont general contractors. It has been brought to our attention that several other Vermont AOT bridge projects, such as Waterbury (IM 0892) scheduled to bid on October 18th and Middlebury (RS 0174-8) have similar disincentive penalties. Middlebury which was bid on October 4th had just three bidders and only the high bidder was from Vermont. Might there be a correlation between excessive disincentive penalties and the ability of local contractors to bid on and be awarded the work for such projects?

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