The Current State of Bonding Thresholds
Post date
July 10, 2019
Body
From the ENR Magazine.
State Bonding Thresholds—or the amounts above which are required to work on state construction projects—are meant to make state work cheaper, easier and more accessible to small contractors. In some states, the threshold amount for supplying a performance bond has moved from $100,000 to $150,000. Merchants Bonding Co.’s Regional Vice President of Contract Underwriting Ed Sipfle sees rising thresholds clashing with other industry trends. He notes, “With the skilled labor shortages in most states, it’s extremely risky to leave even smaller amounts of taxpayer money unprotected."