Wednesday Word to the Wise: Verify Your Performance & Payment Bonds

Yesterday my Twitter feed delivered a pair of tweets about a rash of fraudulent contract surety bonds in Tennessee:

The owner/obligee got “lucky” in the case of the Regency Hotel demolition project at the Memphis International Airport, in that it discovered the fraud before contract award; that at least provided an opportunity to rebid the contract and award it to a properly bonded prime contract.  Goes without saying that the discovery of a forged or otherwise fraudulent bond during contract performance can be a much messier proposition.

What can owners/obligees do to protect themselves?  Verify your bonds.  How?  I suggest utilizing the resources furnished by the Surety & Fidelity Association of America (@SuretyFidelity) on its “Verify Your Bond” webpage. There you will find information needed to locate a particular bonding company and inquire about the authenticity of a specific bond.  You’ll also find a current list of surety companies participating in the Association’s Bond Authentication Program.

Stay vigilant, owners/obligees.