Grand Jury Urges Bond Requirement Amid PA City’s Fiscal Woes

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No more charges out of the second grand jury convened to investigate the near-bankruptcy of Pennsylvania’s capital city. But the 82-page report does make some recommendations for changing state law: Extend the statute of limitations of public officials in Pennsylvania. Law enforcement already gets extra time to charge public officials, but ambiguity arose during former Mayor Stephen Reed’s trial over …

Report: Geopolitical, Workforce Issues Challenge Construction Sector

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Executives in the construction sector named geopolitical instability and workforce management issues as the biggest challenges facing their industry, Willis Towers Watson P.L.C. said in a report released Wednesday. Geopolitical issues were the top threat overall, primarily due to uncertainty of government support and financing, postponement and delays, changes in strategy, and commitment to project pipelines, Willis Towers Watson said …

N.C. Agency Wants Surety to Take Over Hospital Project

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The state has effectively fired the contractor of the new Broughton Hospital. In a letter dated April 20 sent to Archer Western Contractors and Travelers Casualty & Surety Co. of America, the N.C. Department of Health and Human Services said the contractor has failed to resolve or cure six of the seven grounds for annulment the state laid out in …

AG: Officials Face no Criminal Charges Over Unbonded PA Incinerator

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“Obviously flawed.” “Ill-conceived.” “Problematic.” “Lack of transparency.” These are some of a Pennsylvania grand jury’s descriptions of Harrisburg’s incinerator deal debacle that cost the city upwards of $300 million and sent it spiraling toward insolvency. Much of it is laid at the doorstep of then-Mayor Stephen R. Reed, who made a practice of paying off old debt by borrowing anew. …

The Beneficiaries of “Pay-if Paid” Clauses in Construction Contracts

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The law of contract formation allows parties “freedom to contract” in most aspects of transactions, services and/or liabilities. In the area of construction law, general contractors have largely negotiated a shift in the distribution of risk away from the general contractor and to the subcontractor with the inclusion of “pay-if-paid” contractual clauses that make the general contractor’s receipt of payment …

Managing Risk Can Be Contractors’ New Competitive Advantage

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A major shift in the construction industry as it has recovered from the Great Recession is increasingly complex building projects with shorter deadlines. The dynamic has created increased and novel risks. Since bonding is a crucial risk-management tool in construction, surety-bonds experts need to constantly keep their finger on the pulse of the industry. Based on sureties’ understanding of how …