Follow-up to Proposed PennDOT Warranty Bond Requirement Relating to Concrete Pavement

I am writing on behalf of the National Association of Surety Bond Producers (NASBP), a national trade association of member companies employing surety bond producers, including licensed resident and nonresident producers placing bonds for construction and infrastructure projects in the Commonwealth of Pennsylvania and all other jurisdictions. It has recently come to our attention that the Pennsylvania Department of Transportation (PennDOT) is considering certain contractual requirements, specifically a ten-year warranty on plain cement concrete pavement and a warranty bond covering that obligation. This proposed long-term warranty requirement has prompted us to express our concerns to you that the impact of the long-term warranty will likely lessen the competition and increase the pricing of PennDOT projects significantly.

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