Problematic Terms in NKU Construction Management Services Agreement

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 the Commonwealth of Kentucky and in other jurisdictions. A proposal solicitation involving construction management services for a campus recreation center project at Northern Kentucky University recently has been brought to our attention. More specifically, Article 36 – Performance and Payment Bonds of the NKU Construction Management Services General Conditions document contains problematic language addressing (1) the amount of the performance bond required on the construction manager and (2) the need for a countersignature by a “licensed resident agent.” In both instances, we believe these requirements to be contrary to Kentucky law and inapposite to the best interests of Northern Kentucky University.

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