Vague bond requirements could deter sureties from writing bonds

I am contacting you on behalf of the National Association of Surety Bond Producers (NASBP), a national trade association of companies employing licensed surety bond producers, including those resident and non-resident in the Commonwealth of Kentucky. We were recently forwarded a copy of the Performance Bond and the Payment Bond relating to the University of Kentucky (UK) Project# MC 6314 Roach Basement Linear Accelerator Room Renovation (CCK-1887-14) (UK Project). We have reviewed these bonds, and the terms and conditions of these bonds give NASBP cause for concern. More specifically, we believe that these bond terms and conditions are counter to prevailing surety industry practices and to the market reputation of UK as a desirable procurer of construction services. We provide below certain insights that will elucidate our concerns and that we hope will be beneficial to you.

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