Responding to the demands of potential lenders and concessionaires, sureties may play an important role in expanding public-private partnerships in the U.S. by providing a new type of completion and payment bond, according to speakers at the International Risk Management Institute’s construction conference in San Diego held Nov. 17-21.
The new bonds would allow P3 project lenders or developers to make a claim for cash while the majority of the guarantee would be fulfilled in the traditional manner, with the surety investigating the claim and controlling the method of completion.