TXDOT Warranty Bond Requirement Relating to Polymer Overlay

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 construction and infrastructure projects, including projects in the State of Texas. Recently, it has come to our attention that the Texas Department of Transportation (TXDOT) has specified certain contractual requirements, specifically a fifteen year warranty on “thin polymer overlay” 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 TXDOT projects significantly. I am writing you to provide our thoughts and concerns, as your members will be impacted by this matter, particularly if such requirements are routinely specified in the future.

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