P3 Projects

June 12, 2017

P3 Projects or Public Private Partnerships

P3 Projects in the news

There is bipartisan agreement in Washington, D.C. that an infrastructure bill is needed. How that agreement is made and when it is passed remains in question. One thing that appears certain is that P3 Projects are going to be a part of the solution. P3 Projects are design to get private dollars involved in projects that have a public benefit. This could be infrastructure projects that have been delayed but that could benefit a particular business. In many cases, P3 Projects may allow a private entity to invest in the project to expedite its completion.
1. Public Protection on P3 Projects
On normal Federal Government (and most government construction at any level) projects, contracts over a certain size determined by the Federal Miller Act are protected by surety bonds. In short, a surety bond ensures that the public project will be completed and that all subcontractors and suppliers on the project will be paid appropriately.
Private projects may or may not have surety bond requirements included. As P3 Projects become more popular, it is important for government entities at all levels include specific language requiring bonds on P3 Projects at the total contract value.
2. Total Value of P3 Projects
It is important that the entire P3 Project is bonded. In some past cases, bonds were accepted at a lesser amount. This still leaves public money and interests at risk. Conflict over responsibility on completion of the project or payment to subs and subcontractors typically cannot be divided between public and private, therefore the entire project needs to be bonded.
2. Action Items on P3 Projects
Specific infrastructure language on a Federal level bill in not in place at this time. State level bills and language vary by state. In the build up to new P3 Projects, it is important that you reach out to legislators at all levels to make sure bond requirements on P3 Projects remain in place in the same way they are on all public projects. Be available to legislators to answer questions and create appropriate bill language.

If you have any questions or need more information about bonds on P3 Projects, don’t hesitate to contact us –

Jim Dillenburg
jdillenburg@ccisurety.com
866-317-3294

 

P3 Projects
P3 Projects across the country

 

 

 

Our Home Office handles larger bond line situations in Maine, Vermont, New Hampshire, Massachusetts, Connecticut, New York, Pennsylvania, New Jersey, Rhode Island, Delaware, Maryland, Virginia, West Virginia, Ohio, Kentucky, Tennessee, Arkansas, Texas, Oklahoma, Kansas, Missouri, Illinois, Indiana, Michigan, Wisconsin, Minnesota, Iowa, Nebraska, South Dakota, North Dakota, Montana, Wyoming, Colorado, New Mexico, Arizona, Utah, Idaho, Nevada, Oregon, Washington, California, Hawaii, Alaska, and Washington D.C.

 

 

 

 

 

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Please Note: We can always get started working on any bond application that you have already prepared for a larger bond line. CCI Surety, Inc. specializes in hard to place contract bonds that may have previously been declined by other sureties. We use different kinds of tools which allow us the freedom to think outside the box with our underwriting strategy. We are able to get comfortable with difficult situations using escrow / funds control, SBA Surety Bond Guarantee program and working capital deposits as different options to get the bond approved. CCI also has a very successful Easy Start Program for contracts between $250,000 and $1,000,000 that may be obtained with a two page application plus any financial documents that are available. On commercial bond business we handle both standard and non standard business. Contract Bonds – Multiple Markets – Can Provide A+ rated bonds – $3M in-house authority, up to $15M from home office – Quick Turn around – No Agency Requirements SBA Backed Bonds – 2012 National SBA Bond Producer of the Year – Potential to approve bonds even with negative working capital – SBA Bond Program now covers bonds up to $6.5M and in some cases $10M Commercial Bonds – Standard and Non-Standard Bonds – Experienced staff specialized in handling Commercial Bond needs – License and Permit, Fidelity, ERISA, Business Services and Court Bonds – Miscellaneous Bonds

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