01444573

Monograph

http://www.trb.org/Main/Blurbs/167622.aspx

http://www.trb.org/Publications/Blurbs/167622.aspx

Basically, a surety bond is where one has agreed to be liable for another’s debt, default, or other obligation. Various types of surety bonds are used on transit projects, each of which fulfills a specified purpose. They typically fall under one of four common categories: bid bonds, performance bonds, payment bonds, or warranty or maintenance bonds. Transit owners, like other owners of capital projects, use these bonds as a means of mitigating the risk of contractor default. Most often owners of large capital projects encounter unique problems when seeking surety bonds. Federal, state, and local laws require bonding at varying levels for construction and other types of capital projects. In situations where bonding is not required, a transit agency must decide whether, on its own authority, to require bonding or other surety in some form. More recently, problems have arisen regarding the costs of obtaining surety, whether value is being received for the surety required, difficulties obtaining surety for large or unusual projects, and making claims against sureties should problems arise with performance. This digest includes a review of applicable federal law, examples of state and local laws, and industry practices. The digest also examines surety issues and industry practices in various types of construction and other public transportation projects. The types of surety available, including performance, payment, and warranty bonds; letters of credit; and other instruments, are discussed.

English

109p

2012-7

TCRP Legal Research Digest

9780309258326

Web

Appendices; Figures; References; Tables

Case studies; Construction projects; Federal laws; Legal factors; Megaprojects; Public transit; State laws; Surety bonds

Transit projects

Administration and Management; Law; Public Transportation; I10: Economics and Administration

TRIS, TRB

Aug 28 2012 2:38PM