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 professional surety bond producers who place bid, payment, performance, and maintenance bonds for the Nation’s construction and infrastructure projects. Recently, it has come to our attention that the Pennsylvania Department of Transportation (PennDOT) is considering certain contractual requirements, specifically a ten year warranty on cement concrete pavement coupled with a warranty bond covering that obligation, which, in the opinion of NASBP, are not realistic and may have the inadvertent impact of increasing the pricing of and lessening the competition for PennDOT projects significantly.

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