Public-Private Partnerships Need Surety

摘要

Surety industry leaders are paying close attention to the news of infrastructure investments and how public-private partnerships (P3s) may be used to fund them. It's a conversation that is primarily about risk sharing and revenue sharing. Surety leaders maintain that the value of bonds for construction projects is the same even when P3 funding is in play.On public projects, surety bonds protect taxpayers' money. Government departments, public bodies, subcontractors, workers and ultimately the tax payer benefit from the security of a surety bond. These bonds guarantee the performance of a contractor. They provide the security to protect theconstruction project owner against the insolvency of a contractor or the failure of a contractor to complete a contract in accordance with its terms andspecifications. A surety bond will help guarantee the resources necessary to complete the contracts and pay certainbills for labor, material suppliers, and subcontractors.