(PRWEB) September 08, 2016
Stephen Schneider, Midwest Region Vice President for the American Insurance Association (AIA), issued the following statement urging the Indiana legislature to require performance and payment bonds for all public private partnership programs. The Indiana General Assembly Study Committee on Employment and Labor is holding a hearing later today to examine the use of performance bond for public-private construction projects and will make recommendations to the full legislature for consideration in 2017.
Payment bonds protect against the risk of non-payment by assuring payment for completed work. They protect the taxpayer by ensuring the successful completion of public-private partnerships (P3).
Mr. Schneider’s statement follows:
“AIA, working in coordination with Surety and Fidelity Association of America, fully supports the Study Committee’s review for the need to require performance and payment bonds for public private partnerships in Indiana. These are vital and time tested means for protecting taxpayers and subcontractors from the economic losses associated with defaults on public private partnership construction projects.”
“Risks of construction are the same for public private partnership projects as they are for any other public works project and as such taxpayers, subcontractors, suppliers and other laborers should be afforded the same protections. We thank the Study Committee for their thoughtful review of this issue and urge that performance and payment bonds be required of any public private partnership.”