ASA Podcast with the Surety & Fidelity Association of America
ASA led a podcast with Dalton DeFendis, Director of Federal Affairs with The Surety & Fidelity Association of America, to discuss the importance of H.R. 1641, “The Promoting Infrastructure by Protecting Our Subcontractors and Taxpayers Act,” which ensures P3 projects using Transportation Infrastructure Finance Innovation Act (TIFIA) financing have appropriate payment and performance security and are sound federal investments by requiring a surety bond. Sureties protected approximately $3 trillion of public works projects from 2009-2019 in the U.S. In 2017 through 2019 alone, sureties paid over $2.6 billion in connection with contractor defaults and “at risk” federal, municipal, and state projects in the U.S.
During the podcast, ASA tackled the following questions:
- Dalton please give us a quick overview of H.R. 1641 and its importance in the construction industry?
- Are Miller Act bonding requirements clear on public private partnerships (P3s)? Do they not maintain the same level of protections that have been required on public infrastructure projects over the past century?
- What are the risks involved in these P3 projects for subcontractors if they do not contain these bonding requirements?
- Why do P3 projects need surety protection?
- Please provide an example of a P3 Project that lacked bonding protections and the financial impact that it created for subcontractors?
- Why is H.R. 1641 a commonsense solution to a complex problem?