Warranty Obligations on Bond forms for Front-of-Plant Project

I am contacting you on behalf of the National Association of Surety Bond Producers (NASBP), a national trade association of agencies employing surety bond producers, including licensed resident and nonresident producers placing bid, performance, and payment bonds on both public and private projects in the State of California and all other jurisdictions. NASBP was recently forwarded a copy of the Performance Bond form (Bond) and the warranty provisions of the Contract for the Front-of-Plant Project (Project). We have reviewed the Bond terms and warranty provisions, which are counter to prevailing surety and construction industry practices and are highly likely to limit competition and increase the amount of the bid proposals for the Project.

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