The planning commission in Michigan’s Huron County has approved a plan for a wind farm. The company in charge of the project has filed a surety bond to cover the costs of decommissioning the turbines. One commissioner expressed concern that no similar protections are in place for another wind project by the company that was approved in 2005. The company says it plans to address that issue. 

 http://www.michigansthumb.com/articles/2012/05/04/news/local_news/doc4fa3eeaf1cb02617350623.txt 

A recent Reuters article highlighted the opinion of a panel of experts at the Federal Association of Municipal Analysts conference in Las Vegas about longer-term transportation-funding legislation.  The experts believe that a long term approach instead of more temporary extensions would spur the formation of many public-private partnerships. Federal and local governments face tight budgets, but “there is ample [private] capital available to invest in revenue-backed U.S. infrastructure projects,” said analyst Richard Little. 

For the full article, follow the attached link.

http://af.reuters.com/article/energyOilNews/idAFL2E8FKGW120120421

The term “fracking” has recently entered the American lexicon as concerns over ground water contamination as a result of chemicals being used in the process of hydraulic fracturing with horizontal natural gas wells.  Stories from the Great Plains States to the Northeastern United States have led to added concerns with the process.  In addition, to potential contamination concerns the heavy construction equipment necessary to build wells has led to concerns over  potential damage to surrounding infrastructure.  That has led at least one County Engineer in ohio to consider added bonding requirements. 

These potential changes mean that it is important for drilling companies to have the appropriate bonding capacity with their surety company in order to meet potential added requirements.  At Surety Placement Services, LLC we issue performance bonds for well construction companies and drillers throughout the country.  We have the expertise necessary to help you understand what type of surety program you will need to maintain and build your success and we’re here to help.

The receiver for Harrisburg, Pa., who recently called for investigations into an incinerator project that has left the city in grave financial difficulty, has resigned. David Unkovic had advocated for the city to sell its assets to help handle its debt, which totals more than $300 million. No performance bond was secured for the incinerator project.

 http://www.bloomberg.com/news/2012-03-30/harrisburg-receiver-resigns-after-calling-for-federal-probes.html  

Concern is growing with the St. Charles Parish School Board about whether or not the J.B. Martin Middle School’s new wing will meet its completion deadline.   The time delays have been caused by a subcontractor.  However, the contractor’s bonding company was notified and exerted pressure on the subcontractor to complete the work in a timely manner.  Since then the work has been moving more quickly.  This is yet another example of the positive benefits of obtaining bonding for construction jobs.

http://www.nola.com/education/index.ssf/2012/03/jb_martin_middle_schools_new_w.html

A recent article by “Property Casualty 360″ makes the case that it is crucial for agents and contractor to keep open lines of communication with their surety partners.  Surety Placement Services has been stressing this to our customers for year.  According to the article, Contractors should consult with their agent and surety company promptly after running into financial difficulty, said surety executive Roland Richter. “Recognizing that each underwriting situation is unique, sureties have a vested interest in helping contractors work through a problem and prevent a bonded default,” he said.

To read the full article, please follow the attached link.

http://www.propertycasualty360.com/2012/03/12/project-losses-a-major-consideration-in-contractor?t=loss-control

Like many housing developments that were in the planning or construction phase during the recent housing collapse, the Fields of Shorewood development in the village of Shorewood, IL had stalled mid stream with the developer unable to deliver as planned.  However, as a result of requiring the original developer to obtain a surety bond, the village was able to obtain the necessary funds to complete the development.  This is yet another example of the value of surety bonds.  Its also a prime example of why many state and local municipalities are beefing up their bonding requirements.  Thus, its more important than ever for contractors to have adequate bonding capacity if they hope to win contracts and Surety Placement Services is here to help.  For more details on this situation, please see the attached article.

http://heraldnews.suntimes.com/news/10703158-418/shorewood-to-use-bond-funds-to-finish-uncompleted-subdivision-work.html

Surety Placement Services informed you of financial difficulties at First Sealord Surety, Inc. in our blog post dated January 24, 2012.  As a result of those financials troubles, the State of Pennsylvania ordered the liquidation of the firm on February 15th, 2012.  While Surety Placement Services, LLC chose not to seek an appointment with First Sealord, or customers may nonetheless be effected by this event so we felt it prudent to bring this news directly to your attention.

The National Association of Surety Bond Producers released the following statement on the issue, “The National Association of Surety Bond Producers (NASBP), representing professionalsurety bond producers and brokers, and The Surety & Fidelity Association of America (SFAA), representing surety companies, reports that professional surety bond producers and companies stand ready to provide assistance to those affected by the FSSI liquidation and to minimize any inconvenience to the principals and obligees. Furthermore, surety bond producers will help their clients mitigate the effect of the FSSI liquidation, including, where appropriate, identifying suitable replacements for cancelled FSSI bonds.”  The NASBP’s full statement on the matter can be found here:

http://www.nasbp-news.org/pdf/NASBP_SFAA_Statement_on_First_Sealord.pdf

As you are likely aware Surety Placement Services is a full member of the NASBP and we represent more than 30 A rated sureties.  We are ready and able to help if you have clients who were affected by the liquidation of First Sealord.  Please feel free to give us a call if you need assistance.

After almost 20 years, the days of awarding projects without taking competitive bids might be numbered in Wichita if City Manager, Robert Layton, gets his way.  The position is endorsed by Associated General Contractors of Kansas, whose executive vice president, Mike Gibson — a former city council member in Louisiana — said he was surprised that the policy change didn’t originate with council members or Mayor Carl Brewer. The no-bid approach threatens the public’s faith in future public-private partnerships in Wichita, Gibson said.

The potential move away from no-bid contracts will likely mean that contractors interested in pursuing work for the city will now have to obtain bid-bonds from their surety prior to submitting a bid on the projects.  This will provide an added layer of protection for the city and will provide evidence of a contractor’s ability to complete the work.  In the opinion of Surety Placement Services, this is always a good idea.

Read more here: http://www.kansas.com/2012/02/05/2203698/wichita-city-manager-proposes.html#storylink=cpy

http://www.kansas.com/2012/02/05/2203698/wichita-city-manager-proposes.html