Requirements to provide unconditional letters of commitment from surety

I am contacting you 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 licensed non-resident agents placing contract surety bonds in Missouri. Recently, I was forwarded copies of materials relating to the Instructions to Proposers for the I-64 Daniel Boone Bridge Project. Within these materials are requirements concerning a “Surety Commitment Letter” and a “Proposal Bond” that give NASBP cause for concern. More specifically, we believe that these requirements are counter to prevailing surety industry practices and to the market reputation of MoDOT as a desirable procurer of design and construction services.

Read more…