Revisions to CP-5 Subcontractor Payment Provision

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 State of California and all other jurisdictions. It has just come to our attention that Los Angeles County Metropolitan Transportation Authority (LACMTA) intends to incorporate the revisions to CP-5 of LACMT A Compensation & Payment Provisions concerning subcontractor payment in all future LACMTA construction projects in excess of $5 million. NASBP has significant concerns about this revised provision, which is not in the best interest of the prime contractors, their sureties, the subcontractors, LACMT A, or the taxpayers.

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