An Act relative to default insurance programs for certain public construction projects
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill addresses default insurance programs used for public construction projects in Massachusetts. It aims to improve the stability and efficiency of trade contracts secured by performance and payment bonds, particularly when a contractor defaults. The legislation seeks to clarify and strengthen the requirements for these insurance programs, ensuring projects can continue without significant disruption due to contractor insolvency. Ultimately, the goal is to protect public funds and maintain the progress of essential public works.
Key provisions
- Requires default insurance programs to provide greater transparency regarding their operations.
- Establishes standards for the financial stability of default insurance companies.
- Addresses procedures for handling defaults and ensuring timely completion of projects.
- Clarifies the roles and responsibilities of contractors, insurers, and government agencies.
- Focuses on performance and payment bonds securing public construction contracts.
Who is affected
- Public construction contractors
- Default insurance companies
- Government agencies overseeing public projects
- Massachusetts taxpayers
- Trade contractors
Notable changes
- The bill seeks to enhance the oversight of default insurance programs.
- It may introduce requirements for increased capital reserves for insurers.
Bill text
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Sponsors
Official sponsors from legislative records.
2 on record
Primary sponsor
Daniel Cahill
Cosponsor
Daniel Cahill
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