July 21, 2016
A proposed Washington, DC public-private partnership (P3) rule seeks to lay groundwork for procurement that includes requirements for bonds or other securities.
June 8, 2016
A proposed Washington D.C.’s public-private partnership (P3) rule, set to be passed or rejected by the Council of the District of the Columbia in the coming months, lays the groundwork for procurement that includes a requirements for bonds or other securities.The P3 rule, submitted for a 30-day public comment period on May 31, would require that the private entity for each project “…maintain or cause to be maintained performance and payment bonds, letters of credit or other acceptable forms of security in compliance with title VII of the Procurement Practices Reform Act of 2010.” These procurement practices, in turn, require bid security for competitive proposals when the price is estimated to exceed $100,000. Payment bonds, according to the Reform Act, should be for 100% of the contract price that does not include the cost of operation, maintenance and finance. Further, the chief procurement officer can reduce the amount of performance and payment bonds to 50%.“DC ‘s new public-private partnership proposed rule hopefully being passed in the near future would be such a great benefit to credit professionals shipping on these types of projects,” says Connie Baker, CBA, director of operations for NACM’s Secured Transactions Services (STS). If passed, it will provide suppliers great assurance of collecting what is owed in the case of late payment or nonpayment.The council will likely vote on the proposed rule in sometime in September or October, according to Judah Gluckman, deputy director and counsel with the D.C. Office of Public-Private Partnerships (OP3).P3 agreements in D.C. would mandate risk mitigation plans and responsibilities for both the private entity and the government agency, terms regarding the planning, acquisition, financing, improvement and more, as well as any compensation and/or revenue structure of the private entity, including the extent to which the private entity may charge fees to individuals and entities for the use of the P3 facility, the proposed rule states.he private entity must also provide a schedule for an annual independent audit covering all aspects of the agreement and the financial condition of the private party, while funding sources that will fully fund the capital, operation, maintenance and other expenses must be identified under the P3 agreement.
June 2, 2016
In Maryland, a law enacted May 19 prohibits a government agency from requiring a prime contractor on a state construction projects, and a prime contractor from requiring a subcontractor, to begin change order work under a contract until the procurement officer for the agency issues a written change order that specifies whether the work should proceed according to the terms of the contract. The law requires the state to propose regulations regarding the change order process by Jan. 1, 2017.
June 2, 2016
Pay close attention to state lien laws, particularly regarding some of the ways lien rights can be dismissed, in order to maintain them.
June 1, 2016
Make sure to adhere to mechanic’s lien timelines, including requests to extend the liens, to the letter, or lien rights could be dismissed.
May 27, 2016
Like several other states without up-to-date Public-Private Partnership (P3)” statutes in place before 2016, Tennessee has passed legislation that authorizes private entities to develop, redevelop and operate transportation facilities within the state through.
May 11, 2016
Part of a sprawling budget bill—which includes everything from tax benefits for electric car purchasers to construction projects to groundwater protection—signed into law last month may pave the way for more public-private partnership (P3) projects in New York City.
April 22, 2016
In about 50% of U.S. states, the deadline date to file a mechanic’s lien is not only based on a date defined in the statute, it’s also based on the receivable balance remaining to be paid on the general contract. States where the dollar value of a mechanic’s lien is limited to unpaid funds owed on the general contract are commonly referred to as “unpaid balance” lien states. The others are commonly referred to as “full price” lien states. The difference is as follows:
April 22, 2016
Kansas lawmakers are considering SB 475, which would require a payment bond in an amount “equal to the full contract amount solely for the protection of claimants who supply labor or materials to the contractor or subcontractor in the prosecution of the work.” Kansas is one of just more than a dozen states nationwide without such statutes already in place.