Letter in Opposition to HB 2808

On behalf of the National Association of Surety Bond Producers (NASBP) a national trade association representing firms employing surety bond producers, including licensed resident and non-resident agents placing contract surety bonds in the Commonwealth of Massachusetts, we strongly oppose HB 2808, legislation that amends paragraph two of Section 8(a) of Chapter 149A of the Massachusetts General Laws by allowing construction managers at risk (CM@R) to use a subcontractor default insurance (SDI) policy in lieu of the otherwise required performance and payment bonds from trade contractors. In addition, NASBP opposes HB 2808 because, unlike performance and payment bonds, which benefit both the owner and the trade contractors, SDI does not benefit either the owner or unpaid trade contractors. Rather it only benefits the CM@R, which seeks through SDI to retain more of its fee. NASBP sees no need for this legislation as the current requirements provide more than adequate protection and serve the interests of the Commonwealth of Massachusetts.

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