Thanks, A question can a company have two bid bond to cover two parts of the project from the total cost of a project, due a company limited bonding capacity.?
Hi Edgard, We cannot give legal advice or advice specific to surety underwriting. There may be several factors that would impact the answer to this question, including the specific nature and terms of the project solicitation, including whether or not there are any statutory or other legal requirements that might preclude a multiple-bid bond situation. The answer may also depend on the nature and underwriting practices of the Surety(ies) being asked to provide the bid bond(s). If the company has limited bonding capacity, it may be difficult to get a licensed surety to underwrite the excess capacity (undercapitalized liability). This is something that requires legal analysis and specific input from the putative bonding companies. You might want to reach out to competent legal counsel and also inquire with a surety bond producer Home - National Association of Surety Bond Producers (nasbp.org). All the best, The ACD Team
Thanks, A question can a company have two bid bond to cover two parts of the project from the total cost of a project, due a company limited bonding capacity.?
Hi Edgard, We cannot give legal advice or advice specific to surety underwriting. There may be several factors that would impact the answer to this question, including the specific nature and terms of the project solicitation, including whether or not there are any statutory or other legal requirements that might preclude a multiple-bid bond situation. The answer may also depend on the nature and underwriting practices of the Surety(ies) being asked to provide the bid bond(s). If the company has limited bonding capacity, it may be difficult to get a licensed surety to underwrite the excess capacity (undercapitalized liability). This is something that requires legal analysis and specific input from the putative bonding companies. You might want to reach out to competent legal counsel and also inquire with a surety bond producer Home - National Association of Surety Bond Producers (nasbp.org). All the best, The ACD Team