Construction Bonds. A CCM Research and Information Service Info Kit

Transcription

1 Construction Bonds A CCM Research and Information Service Info Kit July 2009

2 A CCM Research and Information Info Kit Introduction The following Construction Bonds InfoKit is provided as an informative publication to all CCM members. This InfoKit is divided into three sections: 1) Relevant Connecticut Legislation & General Information 2) Sample Municipal Construction Bond Regulations 3) Examples of Bonds For more information regarding this or any question please contact CCM Research and Information Service Department at (203) or All Rights Reserved. This publication may not be reproduced, stored or transmitted in any way for profit and is intended for the exclusive use of Connecticut Conference of Municipalities (CCM) Members and for the employees of its Members. This publication may not be shared, copied, or electronically stored for the use of any non-member municipality, entity, or individual. The Connecticut Conference of Municipalities reserves the right to grant exceptions to these limitations and will do so exclusively by means of prior written consent. CCM is not responsible for any errors or omissions that may appear in this publication. This publication is intended for general reference purposes only and is not intended to provide legal advice, opinions, or conclusions. If you have questions about particular legal issues, the application of the law to specific factual situations, or the interpretation of any statutes, ordinances, or case law referenced in this publication, CCM strongly recommends that you consult your attorney, certified public accountant, or other relevant party. June 2009, The Connecticut Conference of Municipalities The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 2

3 Table of Contents Section 1: Relevant Connecticut Legislation & General Information CHAPTER 847 LIENS, Sec Public buildings and public works. Bonds for protection of employees and materialmen. Performance bonds. Limits on use of owner-controlled insurance programs. Certain surety contract provisions.... Public Act (House Bill No. 5677) An Act Concerning Surety Bonds and Construction Contracts.. Public Act (Senate Bill No. 493) An Act Concerning Subcontractor Claims. Article: The Importance of Surety Bonds in Construction, The Surety & Fidelity Association of America (SFAA), National Association of Surety Bond Producers, and the Surety Information Office. Article: 10 Things You Should Know About Surety Bonding, The Surety & Fidelity Association of America (SFAA), National Association of Surety Bond Producers, and the Surety Information Office. Article: Contract Surety Bonds: Protecting Your Investment, The Surety & Fidelity Association of America (SFAA), National Association of Surety Bond Producers, and the Surety Information Office Article: Surety Bonds at Work, The Surety & Fidelity Association of America (SFAA), National Association of Surety Bond Producers, and the Surety Information Office Department of the Treasury's Listing of Certified Companies Section 2: Sample Municipal Construction Bond Regulations Updated, Willington (est. pop. 6,139).. Avon (est. pop. 17,333 ) Berlin (est. pop. 20,254) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 3

4 Westport (est. pop. 26,508) Durham (est. pop. 7,397).. Bristol (est. pop. 60,911) New Britain (est. pop.70,664). Section 3: Examples of Bonds The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 4

5 Section 1 Relevant Connecticut Legislation & General Information The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 5

6 CHAPTER 847 LIENS Sec Public buildings and public works. Bonds for protection of employees and materialmen. Performance bonds. Limits on use of owner-controlled insurance programs. Certain surety contract provisions. (a) Each contract exceeding one hundred thousand dollars in amount for the construction, alteration or repair of any public building or public work of the state or a municipality shall include a provision that the person to perform the contract shall furnish to the state or municipality on or before the award date, a bond in the amount of the contract which shall be binding upon the award of the contract to that person, with a surety or sureties satisfactory to the officer awarding the contract, for the protection of persons supplying labor or materials in the prosecution of the work provided for in the contract for the use of each such person, provided no such bond shall be required to be furnished (1) in relation to any general bid in which the total estimated cost of labor and materials under the contract with respect to which such general bid is submitted is less than one hundred thousand dollars, (2) in relation to any sub-bid in which the total estimated cost of labor and materials under the contract with respect to which such sub-bid is submitted is less than one hundred thousand dollars, or (3) in relation to any general bid or sub-bid submitted by a consultant, as defined in section 4b-55. Any such bond furnished shall have as principal the name of the person awarded the contract. (b) Nothing in this section or sections 49-41a to 49-43, inclusive, shall be construed to limit the authority of any contracting officer to require a performance bond or other security in addition to the bond referred to in subsection (a) of this section, except that no such officer shall require a performance bond in relation to any general bid in which the total estimated cost of labor and materials under the contract with respect to which such general bid is submitted is less than twenty-five thousand dollars or in relation to any sub-bid in which the total estimated cost of labor and materials under the contract with respect to which such sub-bid is submitted is less than fifty thousand dollars. (c) No contract for the construction, alteration or repair of any public building or public work of the state or a municipality that requires a person to supply the state or municipality with a bond may include a provision that requires the person to obtain the bond from a specific surety, agent, broker or producer. No contracting officer may require that a bond be obtained from a specific surety, agent, broker or producer. (d) In the event that any political subdivision of the state enters into a contract described in subsection (a) of this section and fails to obtain delivery from the contractor of the bond required by this section, any person who has not been paid by the contractor for labor or materials supplied in the performance of work under the contract shall have the same legal right of action against such political subdivision of the state as such person would have had against a surety under the provisions of section Nothing in this section shall be construed to extend liability to the state for any person's right to payment or constitute a waiver of the state's sovereign immunity. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 6

7 (e) (1) As used in this subsection, "owner-controlled insurance program" means an insurance procurement program under which a principal provides and consolidates insurance coverage for one or more contractors on one or more construction projects. (2) No contract for the construction, alteration or repair of any public building or public work of the state or a municipality may include a provision that allows or requires the state or municipality to maintain an owner-controlled insurance program, except for (A) a project approved pursuant to section 10a-109e, or (B) one or more municipal projects totaling one hundred million dollars or more (i) under the supervision of one construction manager, or (ii) located within the boundaries of a municipality if under the supervision of more than one construction manager. (3) Each contract or policy of insurance issued under an owner-controlled insurance program pursuant to this subsection shall provide that: (A) Coverage for work performed and materials furnished shall continue from the completion of the work until the date all causes of action are barred under any applicable statute of limitations. (B) Any notice of a change in coverage under the contract or policy or of a cancellation or refusal to renew the coverage under the contract or policy shall be provided to the principal and all contractors covered under the program. (C) The effective date of a (i) change in coverage under the contract or policy shall be at least thirty days after the date the principal and contractors receive the notice of change in coverage as required under subparagraph (B) of this subdivision, and (ii) cancellation or refusal to renew shall be at least sixty days after the principal and contractors receive the notice of change in coverage as required under subparagraph (B) of this subdivision. (4) Each principal or contractor shall disclose in the project plans or specifications at the time the principal or contractor is soliciting bids for the construction project that the project will be covered by an owner-controlled insurance program. (f) Whenever a surety bond is required in connection with a contract for the construction, reconstruction, alteration, remodeling, repair or demolition of any public building for work by the state or a municipality, that is estimated to cost more than five hundred thousand dollars and is paid for, in whole or in part, with state funds, the surety contract between the contractor named as principal in the bond and the surety that issues such bond shall contain the following provision: "In the event that the surety assumes the contract or obtains a bid or bids for completion of the contract, the surety shall ensure that the contractor chosen to complete the contract is prequalified pursuant to section 4a-100 of the Connecticut general statutes in the requisite classification and has the aggregate work capacity rating and single project limit necessary to complete the contract". The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 7

8 Public Act (House Bill No. 5677) An Act Concerning Surety Bonds and Construction Contracts (Signed by the Governor 5/8/2006) The law requires public works contracts for which a payment bond is required to include certain provisions establishing a payment schedule. This act requires a general contractor or subcontractor, regardless of whether a surety bond is in place, to deposit funds in an interestbearing escrow account on the written demand of its subcontractor if (1) a payment is not made according to the contract schedule, (2) 10 days have passed since the payment date, and (3) the subcontractor has sent a payment demand by registered or certified mail. Under prior law, the general contractor or subcontractor had to escrow funds under these conditions only if a surety bond was not in place. By law, unchanged by the act, the escrowed amount must be for the amount that the general contractor or subcontractor is liable, which is the amount of the claim plus 1% per month interest. The contractor or subcontractor may refuse to escrow funds if he contends that his subcontractor has not substantially completed the work according to the terms of the contract. EFFECTIVE DATE: October 1, 2006 Public Act (Senate Bill No. 493) An Act Concerning Subcontractor Claims (Submitted to Secretary of State 5/17/06) This act revises a subcontractor's or supplier's deadlines for filing payment claims against a general contractor's surety company under certain public works contracts and for suing a surety company to compel payment. The law requires public works contracts valued at more than $50,000 to require the general contractor to (1) pay the amount due subcontractors or suppliers within 30 days after being paid by the state or municipality if the work performed or material supplied was included in a requisition or estimate and (2) include in its subcontracts a requirement that a subcontractor pay its subcontractors within 30 days after being paid by the general contractor. These contracts must also require the contractor to furnish a payment bond from a surety company. A general contractor or subcontractor who has not been fully paid after 60 days has the right to file a payment claim with the surety company. Under prior law, the deadline for filing these claims was 180 days after the requisition for work or materials was submitted or, if the work or materials was not included in a requisition or estimate, 180 days after the work was performed or the materials supplied. The act instead makes the deadline for filing claims, other than for retainage, 180 days after the last date the claimant performed work or supplied materials. For retainage, the act sets 180 days after the payment due date as the deadline. Retainage is the amount withheld from progress payments conditioned on substantial or final completion of all work in accordance with a construction contract, but it does not include amounts withheld for failure to comply with construction plans or specifications. The act changes the deadline for filing a suit to enforce a claim in the same way that it changes the The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 8

9 deadline for making a claim against the surety. Prior law required a suit to be filed within one year after the requisition was submitted or, if the work or materials was not included in a requisition, within one year after the work was performed or the material was supplied. The act instead makes the deadlines one year after the last date that the claimant performed work or supplied materials or, if the suit is being filed solely for payment of retainage, one year after the payment due date. EFFECTIVE DATE: Upon passage The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 9

10 The Importance of Surety Bonds in Construction Historical Perspective Surety bonds have been a valuable tool for centuries. The first known record of contract suretyship was an etched clay tablet from the Mesopotamian region around 2750 BC. According to the contract, a farmer drafted into the service of the king was unable to tend his fields. The farmer contracted with another farmer to tend them under the condition they split the proceeds equally. A local merchant served as the surety and guaranteed the second farmer s compliance. Suretyship was addressed in the first known written legal code, the Code of Hammurabi, around BC. A Babylonian contract of financial guarantee from 670 BC is the oldest surviving written surety contract. The Roman Empire developed laws of surety around 150 AD that exist in the principles of suretyship today. While suretyship has a long history, it wasn t until the 19th century that corporate surety bonds were used. Recognizing the need to protect taxpayers from contractor failure, Congress passed the Heard Act in 1894, which required surety bonds on all federally funded projects. The Miller Act of 1935 (40 U.S.C. Section 270a et. seq.) was the last major change in public sector surety, and is the current federal law mandating surety bonds on federal public works. It requires performance bonds for public work contracts in excess of $100,000 and payment protection, with payment bonds the preferred method, for contracts in excess of $25,000. Almost all 50 states, the District of Columbia, Puerto Rico, and most local jurisdictions have enacted similar legislation requiring surety bonds on public works. These generally are referred to as Little Miller Acts. Risky Business How one evaluates and manages risk on construction projects and makes fiscally responsible decisions to ensure timely project completion is key to success. To gamble on a contractor whose level of commitment or qualification is uncertain or who could become bankrupt halfway through the job can be a costly decision. How can a public agency using the low-bid system in awarding public works contracts be sure the lowest bidder is dependable? How can private sector construction project owners manage the risk of contractor failure? Surety bonds provide financial security and construction assurance by assuring project owners that contractors will perform the work and pay specified subcontractors, laborers, and material suppliers. A surety bond is a risk transfer mechanism where the surety company assures the project owner (obligee) that the contractor (principal) will perform a contract in accordance with the contract documents. Types of Bonds There are three basic types of contract surety bonds: The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 10

11 The bid bond assures that the bid has been submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds. The performance bond protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. The payment bond assures that the contractor will pay specified subcontractors, laborers, and material suppliers on the project. Financial Security & Construction Assurance Although surety bonds are mandated by law on public works projects, the use of surety bonds on privately owned construction projects is at the owner s discretion. Alternative forms of financial security, such as letters of credit and self-insurance, do not provide the 100% performance protection and 100% payment protection of surety bonds nor do they assure a competent contractor. With surety bonds, the risks of project completion are shifted from the owner to the surety company. For that reason, many private owners require surety bonds from their contractors to protect their company and shareholders from the enormous cost of contractor failure. To bond a project, the owner specifies the bonding requirements in the contract documents. Obtaining bonds and delivering them to the owner is the responsibility of the contractor, who will consult with a surety bond producer. Subcontractors may also be required to obtain surety bonds to help the prime contractor manage risk, particularly when the subcontractor is a significant part of the job or a specialized contractor that is difficult to replace. Most surety companies are subsidiaries or divisions of insurance companies, and both surety bonds and traditional insurance policies are risk transfer mechanisms regulated by state insurance departments. However, traditional insurance is designed to compensate the insured against unforeseen adverse events. The policy premium is actuarially determined based on aggregate premiums earned versus expected losses. Surety companies operate on a different business model. Surety is designed to prevent loss. The surety prequalifies the contractor based on financial strength and construction expertise. The bond is underwritten with little expectation of loss. Prequalification of the Contractor Sureties are able to accept the risk of contractor failure based on the results of a thorough, rigorous, and professional process in which sureties prequalify the contractor. This prequalification process is an in-depth look at the contractor s business operations. Before issuing a bond the surety company must be fully satisfied that the contractor has, among other criteria: Good references and reputation; The ability to meet current and future obligations; The experience matching the contract requirements; The necessary equipment to do the work or the ability to obtain it; The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 11

12 The financial strength to support the desired work program; An excellent credit history; and An established bank relationship and line of credit. The surety company must be satisfied that the contractor runs a well-managed, profitable enterprise, keeps promises, deals fairly, and performs obligations in a timely manner. Surety bonds have played an important role in the construction industry s success, allowing the industry to sustain its position as one of the largest contributors to the nation s economic stability and growth. Contractor Failure Construction is a risk-filled enterprise, and even capable and well-established contractors can ultimately fail. According to BizMiner, of the 1,155,245 general contractors and operative builders, heavy construction contractors, and special trade contractors operating in 2006, only 919,848 were still in business in 2008 a 20.37% failure rate. Despite the surety s rigorous prequalification process and best judgment about the qualifications of the contractor, sometimes contractor default is unavoidable. However, when a contractor fails on a bonded project, it is the surety company that remedies the default not the project owner and not at taxpayers expense. In the unfortunate event that a bonded contractor does default, the surety has legal obligations to the project owner and the contractor. First, the owner must formally declare the contractor in default. Then the surety company conducts an impartial investigation before settling any claim. This protects the contractor s ability to pursue legal recourse in the event that the owner improperly declares the contractor in default. When there is a proper default, the surety s options often are spelled out in the bond. These options may include the right to re-bid the job for completion, bring in a replacement contractor, provide financial and/or technical assistance to the existing contractor, or pay the penal sum of the bond. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 12

13 Bond Rates Surety bond premiums vary from one surety to another, but can range from 0.5% to 2% of the contract amount, depending on the size, type, and duration of the project and the contractor. Typically, there is no direct charge for a bid bond. In many cases, a performance bond incorporates the payment bond and a maintenance period. The contractor includes the bond premium amount in the bid and the premium generally is payable upon execution of the bond. If the contract amount changes, the premium may be adjusted for the change in contract price. Contract surety bonds are a wise investment protecting public owners, private owners, lenders, and prime contractors from the potentially devastating expense of contractor and subcontractor failure. Benefits of Bonds After analyzing the risks involved with a construction project, consider how surety bonds protect against those risks. Owners, lenders, taxpayers, contractors, and subcontractors are protected because: The contractor has undergone a rigorous prequalification process and is judged capable of fulfilling the obligations of the contract; Contractors are more likely to complete bonded projects than non-bonded projects since the surety company may require personal or corporate indemnity from the contractor; Subcontractors have no need to file mechanic s liens on a private project when a payment bond is in place, and because mechanics liens cannot be placed against public property, the payment bond may be the only protection these claimants have if they are not paid for the goods and services they provide; Bonding capacity can increase a contractor s or subcontractor s project opportunities; The surety bond producer and underwriter may be able to offer technical, financial, or management assistance to a contractor; and The surety company fulfills the contract in the event of contractor default. Any contractor whether in business for one year or 100, large or small, experienced or novice can experience serious problems. Through the years surety bonds have held fast as a comprehensive and reliable instrument for minimizing the risks in construction. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 13

14 10 Things You Should Know About Surety Bonding Making the right choice to mitigate and manage risk on construction projects and selecting the most fiscally responsible option to ensure timely project completion are imperative to a successful project and a sound business. Gambling on a contractor or subcontractor whose level of commitment is uncertain or who could become bankrupt halfway through the job can be an economically devastating decision. Surety bonds offer the optimal solution: providing financial security and construction assurance by assuring project owners that contractors are capable, in the surety s opinion, of performing a construction contract and paying specified subcontractors, laborers, and material suppliers. 1. A surety bond is a three-party agreement where the surety company assures the obligee (owner) that the principal (contractor) will perform a contract. Surety bonds used in construction are called contract surety bonds. 2. There are three primary types of contract surety bonds. The bid bond assures that the bid has been submitted in good faith, that the contractor intends to enter the contract at the price bid and provide the required performance and payment bonds. The performance bond protects the owner from financial loss in the event that the contractor fails to perform the contract in accordance with its terms and conditions. The payment bond assures that the contractor will pay certain workers, subcontractors, and materials suppliers. 3. Most surety companies are subsidiaries or divisions of insurance companies, and both surety bonds and insurance policies are risk transfer mechanisms regulated by state insurance departments. However, insurance is designed to compensate the insured against unforeseen adverse events. The policy premium is actuarially determined based on aggregate premiums earned versus expected losses. Surety companies operate on a different business model. Surety is designed to prevent loss. The surety prequalifies the contractor based on financial strength and construction expertise. The bond is underwritten with little expectation of loss. 4. In 1984 Congress passed the Heard Act to protect federal projects from contractor default and protect subcontractors from nonpayment by contractors. The Heard Act was supplanted by the Miller Act in 1935, which basically requires performance and payment bonds in excess of $100,000 and payment protection for contracts between $30,000 and $100,000. A corporate surety company issuing these bonds must be listed as a qualified surety on the Treasury List. Also, almost all 50 states, the District of Columbia, Puerto Rico, and most local jurisdictions have enacted similar legislation requiring surety bonds on public works. These generally are referred to as Little Miller Acts. Owners of private construction also manage risk by requiring surety bonds. 5. Construction is a risky business. Of 1,155,245 contractors in business in 2006 only 919,848 were still in business in 2008 a 20.4% failure rate. Surety bonds offer The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 14

15 assurance that the contractor is capable of completing the contract on time, within budget, and according to specifications. Specifying bonds not only reduces the likelihood of default, but with a surety bond, the owner has the peace of mind that a sound risk transfer mechanism is in place. The burden of construction risk is shifted from the owner to the surety company. 6. Surety bond premiums vary from one surety to another, but can range from 0.5% to 2% of the contract amount, depending on the size, type, and duration of the project and the contractor. Typically, there is no charge for a bid bond if performance and payment bonds are required on the project. In many cases, performance bonds incorporate payment bonds and maintenance bonds. 7. The surety company s rigorous prequalification of the contractor protects the project owner and offers assurance to the lender, architect, and everyone else involved with the project that the contractor is able to translate the project s plans into a finished project. Surety companies and surety bond producers have been evaluating contractor and subcontractor performance for more than a century. Their expertise, experience, and objectivity in prequalifying contractors is one of a bond s most valuable attributes. Before issuing a bond, the surety company must be fully satisfied that the contractor has, among other criteria: good references and reputation; the ability to meet current and future obligations; experience matching the contract requirements; the necessary equipment to do the work or the ability to obtain it; the financial strength to support the desired work program; an excellent credit history; and an established bank relationship and line of credit. 8. Contractor default is an unfortunate, and sometimes unavoidable, circumstance. In the event of contractor failure, the owner must formally declare the contractor in default. The surety conducts an impartial investigation prior to settling any claim. This protects the contractor s legal recourse in the event that the owner improperly declares the contractor in default. When there is a proper default, the surety s options often are spelled out in the bond. These options may include the right to re-bid the job for completion, bring in a replacement contractor, provide financial and/or technical assistance to the existing contractor, or pay the penal sum of the bond. That owners have been shielded from risk is evidenced by the fact that surety companies have paid more than $10.5 billion due to contractor default since 1994, according to The Surety & Fidelity Association of America, Washington, DC. In 2008, the surety industry paid more than $13 million in losses on private construction and more than $1.5 billion since When bonds are specified in the contract documents, it is the contractor s responsibility to obtain them. The contractor generally includes the bond premium amount in the bid and the premium generally is payable upon execution of the bond. If the contract amount The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 15

16 changes, the premium will be adjusted for the change in contract price. Contract surety bonds are a wise investment providing qualified contractors and protecting public owners, private owners, and prime contractors from the potentially devastating expense of contractor and subcontractor default. 10. After analyzing the risks involved with a construction project, consider how surety bonds protect against those risks. Owners, lenders, taxpayers, contractors, and subcontractors are protected because: The contractor has undergone a rigorous prequalification process and is judged capable of fulfilling the obligations of the contract; Contractors are more likely to complete bonded projects than non-bonded projects since the surety company may require personal or corporate indemnity from the contractor; Subcontractors have no need to file mechanics liens on private projects when a payment bond is in place; Bonding capacity can help a contractor or subcontractor grow by increasing project opportunities and providing the benefits of assistance and advice of the surety bond producer and underwriter; Surety companies may prevent default by offering technical, financial, or management assistance to a contractor; and The surety company fulfills the contract in the event of contractor default. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 16

17 Contract Surety Bonds: Protecting Your Investment How do you evaluate and manage risk on your construction projects? How do you ensure that your projects are completed on time, on budget, and to contract specifications? How do you ensure that contractors and subcontractors successfully meet their obligations? One way is with bid, performance, and payment bonds. Specifying surety bonds ensures capable and qualified contractors and subcontractors and protects you from financial loss in the event of contractor failure. How Do Surety Bonds Work? With a surety bond, the surety company and its financial resources stand behind the contractor, which enables the contractor to enter into a contract. You receive a bond from a financially responsible surety company licensed to transact surety. Surety bonds provide protection by screening out unqualified contractors. Before contractors can obtain a surety bond, they undergo a rigorous prequalification process, called underwriting, to determine whether they are capable of performing a given contract. When a surety underwrites performance and payment bonds, it stands behind the contractor s promise to: perform the work according to the contract s terms and conditions, and pay certain subcontractors, laborers, and material suppliers. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 17

18 Types and Benefits of Contract Surety Bonds Bid Bond Assures that the bid has been submitted in good faith, the contractor intends to enter into the contract at the price bid, and the contractor will provide the required performance and payment bonds. Performance Bond Protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. Payment Bond Assures that certain subcontractors, laborers, and material suppliers will be paid in the event of contractor default, and prevents subcontractors from filing mechanics liens on the project. Prequalification The fundamental concept of contract surety is that contractor default is preventable. Surety companies spend a great deal of time and expense in the underwriting process to qualify a contractor before issuing a surety bond. This effort keeps contractor defaults to a minimum. Since surety companies back their promises with their own assets, they conduct a careful, professional, and rigorous prequalification review of the contractor. Because surety companies and bond producers have been evaluating contractor and subcontractor performance for more than a century, they possess the expertise, experience, and objectivity to effectively prequalify the contractor and assure project completion. The surety bond premium is a fee for this expertise and financial backing. Because a contractor s bonding capacity affects his or her ability to acquire work, the contractor provides more comprehensive information to the surety than to the owner. The surety company and producer have access to detailed financial information; ongoing analysis of the contractor s strengths and weaknesses; and information on past, current, and future work. The surety bond underwriter has the formidable task of assessing the strength of a construction firm based on a prediction of profits on uncompleted jobs and the analysis of the contractor s cost systems, billing patterns, timeliness of completion, and likelihood of profitability. Surety professionals make informed decisions to prequalify the contractor. Their unique relationship with a contractor allows them to evaluate each element and determine whether the contractor can complete the job. It is more economical to have a surety professional perform the prequalification than for an owner to maintain a staff or hire a consultant for this purpose. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 18

19 What Surety Professionals Analyze Financial Strength Ability to Perform Reputation With Annual & interim financial statements Investment strategies Cost control mechanisms Work in progress Cash flow Net worth Working capital Bank & other credit relationships Prior experience on similar projects Equipment Personnel Past, current, and future workload (bonded & non-bonded) Continuity plan Organization Management plan Project Owners Subcontractors Suppliers Lenders Subcontractors Subcontractors have a significant impact on the profitability of your projects. Two significant risk factors are their ability to fulfill their contractual obligations and their right to file mechanics liens. Performance and payment bonds offer substantial protections from both. Subcontractors who are unable to perform can bring your project to a halt, particularly if the subcontractor is responsible for a significant portion of the contract or is a specialty contractor that is difficult to replace. The general contractor is responsible for its subcontractors. However, when the general contractor requires key subcontractors to obtain performance bonds, you are assured of qualified subcontractors on your project. Subcontractors deserve the protection of a payment bond. No matter how qualified the subcontractors are, if the general contractor fails to pay them you run a significant risk of project delays and mechanics liens. However, when you specify a payment bond, certain subcontractors, laborers, and suppliers are assured payment in the event of contractor default. The surety company investigates claims made on the payment bond and pays subcontractors directly when the contractor is found in default of the payment bond. As Northland College experienced, a claim of non-payment may even occur after the project is complete or nearly complete, even if the owner has already paid the contractor for the work. Keeping key subcontractors on the job can help keep a project moving toward timely completion. Cost The cost of a performance bond is a one-time premium, which typically ranges from 0.5 2% of the contract amount, depending on the size and type of the project and the contractor s bonding capacity. There is often no charge for the bid bond, and the payment bond may be issued at no The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 19

20 additional charge when issued in conjunction with a performance bond. The contractor generally includes the bond premium amount in the bid. Contract Amount Bond Premium $100,000 $1,200 $2,500 $1 Million $7,700 $13,500 $10 Million $56,950 $81,000 $50 Million $206,475 $341,000 Rates may vary depending on the size and type of the project and the contractor s bonding capacity. These rates are approximate and are intended to provide examples of the range of rates an owner might expect. A Contractor s History Is No Guarantee When Northland College in Ashland, Wisconsin decided to build the $12 million Larson-Juhl Center for Science and the Environment, the Board of Trustees didn t require performance or payment bonds. According to Harold Vanselow, Vice President of Finance and Administration, the college s Board of Trustees chose the construction company because of its history with the college. It had been in business for more than 100 years and the owner s great-grandfather laid the first stone for the first building of the college when it was built in A former owner of the construction company was at one time a trustee himself, and the company had successfully performed other projects for the college. By all accounts, it appeared the college made an informed decision on choosing a contractor. Vanselow stated that, The project continued on schedule and on budget, and the college made all payments to the general contractor in full, and on time. It came as quite a surprise when, after the project was nearly complete, seven subcontractors filed liens totaling nearly $900,000 because the contractor hadn t paid them. Because the Board of Trustees was so eager to develop a great science facility, it did not recognize the value of a bond. The Board believed the $70,000 - $100,000 bond premium could be better used on equipment and supplies for the new building. Now the college must find a way to settle $900,000 in liens on the completed project. Realistically, a contractor with a 100-year history of work on college projects who has successfully completed similar projects for similar contract amounts, and who had a good The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 20

21 reputation with the owner doesn t sound like much of a gamble. But the risk in construction often lies in the uncontrollable, unpredictable, and unknown. According to one of the subcontractors on the job, the company was having financial difficulties because of some problem jobs a few years earlier. Surety professionals make informed decisions when prequalifying a contractor for a bond. They look at the financial strength of the contractor, the management structure and ability, the volume and makeup of other work the contractor is performing, as well as the character and reputation of the contractor. This unique relationship with a contractor allows the surety underwriter and surety bond producer to evaluate each element and guarantee that the contractor can complete the job for the owner. Reputation alone does not complete contracts and a solid contractor can become an insolvent contractor very rapidly if one or more of the elements changes. The small fee for prequalification and the surety s financial guarantee of the project are very valuable products to an owner. The relationship that an owner has with a contractor is arm s length while a surety s relationship is a day-to-day partner. A surety has much greater insight as to a contractor s abilities to perform than any owner could possibly have. Specifying a Bond To require a bond on a project, simply state the requirement in the contract specifications. It is the contractor s responsibility to contact a surety bond producer and obtain the necessary bonds. The surety bond producer, also called an agent or broker, guides the contractor through the prequalification process and helps him or her develop a business relationship with a surety company. When the contractor submits a bond, read the bond form carefully and understand its provisions. Make certain all data is entered correctly and that it is signed and dated. Bond form language is important in determining the surety company s responsibilities and liabilities. The bond form should: Stipulate the parties to the bond; Indicate the surety company s maximum financial obligation known as the penal amount of the bond; State the surety company s obligations under the bond; Include the construction contract and specifications by reference; Provide a brief description of the project; and Give the location of the project. It Pays to Know the Surety Company Before you accept a bond, it is important to verify that it is from a reputable surety company. Contact your state Insurance Department or visit its Web site to confirm that a surety company is The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 21

22 licensed to do business in your state. As with any product, know what you are purchasing and take a few minutes to know with whom you are dealing. The Southgate Recreation and Park District in Sacramento, CA learned this lesson the hard way. A developer donated 146 acres to the park district adjacent to 1,100 acres he intended to subdivide. The stipulation was that the park district would build a golf course within four years or the land would revert to the developer. It sounded like a good deal for everyone - the park district would receive valuable land, the public would have a golf course, and the developer would receive a tax break and increase his property s value. A feasibility study estimated golf course construction at $3.9 million. The low bid was $3 million and the next lowest bid was $4 million. With such a huge gap, the park district should have questioned whether the low bidder submitted a responsible bid. However, lured by savings of $1 million, the park district awarded the contract to the lowest bidder. When the secondlowest bidder notified the owner that the contractor s surety company was questionable, the park district did nothing. Soon after the project began, the contractor experienced financial problems. He was spread too thin on other projects, was unable to pay subcontractors and suppliers, and soon filed bankruptcy, leaving the owner with an unfinished project and $500,000 in subcontractors claims. The park district soon learned that the surety company was just a shell and the bonds were illegal and unenforceable. Had the park district heeded the warning signs and checked with the state Department of Insurance, it would have learned that the surety company was neither licensed nor approved to do business in the state. It is unlikely that a responsible, licensed surety company would have bonded the original contractor. Said a California Department of Insurance spokesman, If there was more due diligence on the front end, this type of thing could be avoided. While the case is still in litigation, that free land and $1 million bid spread may end up costing the park district several million dollars. Contractor Failure Prevention and Response Surety underwriters and surety bond producers are a valuable resource to contractors, using their experience and knowledge to help contractors avoid extreme risks and overcome challenges. Most major surety companies have construction attorneys, accountants, and engineers to help viable contractors through temporary problems. The surety company can proactively respond in many different ways, and not just when a contractor defaults on a project. The surety underwriter is trained to make impartial judgments about whether a contractor can perform the contract, and does not expect a loss. However, losses do occur. Contractors may default if there are drastic financial changes in the economy, unforeseen changes in job site conditions, or death or illness of a key employee. Usually, it takes a combination of events to force a contractor into default. When that happens, the professional expertise of the surety company and surety bond producer is there. With the surety company s technical knowledge, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 22

23 practical experience, and resources and the cooperation of the contractor and owner, losses can be minimized and the job completed to the satisfaction of all parties. A minimal number of defaults signifies that surety companies have been successful in screening out unqualified contractors from the bidding process. If inadequately financed or incompetent contractors are allowed to bid, particularly in the lowest bidder award system, the number and cost of defaults will increase. The surety is paid for prequalifying the contractor and assuring that the contractor will perform. One of the most difficult variables to account for in the prequalification process is the interdependent nature of construction. The difficulties listed above may occur on other projects being performed by the contractor, which ultimately affects all projects on which the contractor is working (including yours!). These setbacks may occur with a subcontractor or supplier and eventually cause problems on your project. This is why it is important not only to have the prequalification process conducted by the surety, but also to have its financial backing in the event default occurs. Why Contractors Fail Accounting & Management Issues Inadequate financial, accounting, and project management systems Change in ownership and/or personnel Change in scope of business Rapid over-expansion (volume and/or territory) Labor & Material Issues Subcontractor failure Non-bonded subcontractors/selective bonding of subcontractors Labor and/or material shortages Cost escalations Work Environment Issues Onerous contract terms and conditions Unexpected economic downturn Inclement weather Default is an unfortunate, and sometimes unavoidable, circumstance. To reduce the likelihood of contractor default: 1. Review the contract documents. Establish terms of the agreement, provide clear explanation of the contractor s obligations, and define what constitutes default. 2. Provide the contractor with a high-quality working set of plans and specifications. 3. Pay the contractor on time. 4. Maintain adequate insurance. 5. Communicate with the surety company to inform it of progress and any potential problems. 6. Notify the surety company of changes in the contract. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 23

24 Claims The surety company has legal obligations to you and the contractor. It first must investigate a claim before taking action in order to protect the contractor s legal recourse in the event of improper declaration of default. On the other hand, the surety must keep in mind its obligations to you. To expedite the claims process, define default in the contract and communicate with the contractor and the surety company. Once notified of a default, the surety company independently investigates notices of disputes or claims and provides you with its assessment. Since this investigation must be impartial and responsible in order to meet state standards as well as their own company service requirements, claims investigations are thorough and can be timeconsuming. When the surety finds the contractor to be in default, it is obligated to respond to you and perform in accordance with the terms of the contract -- subject to the limitations and understandings contained in the performance bond. In addition to this obligation, the surety may exercise its option to proceed in discharging its bond liability, if any, without risking a claim by the contractor for interference with the contract. There are things you can do to manage the process: Verify validity of the bond before awarding the contract; Notify the surety of changes in the contract; Know who to contact at the surety company; Notify the surety as soon as you recognize problems occurring on the project; If possible, allow the contractor time to cure the default before termination; If default occurs, notify the surety company in writing and ask for a specific response; Be reasonable and diligent in providing notice of default; Request a face-to-face meeting to discuss the complaint; and Provide records and correspondence to the surety company; If the surety company s investigation finds that the contractor has defaulted on the project under the performance bond, the surety company, in most cases, may: Re-bid the job for completion; Arrange for a replacement contractor chosen by the surety company; Retain the original contractor and provide trained personnel and/or financial assistance; or Reimburse the owner (pay the penal sum of the bond). If the investigation reveals that the contractor is not in default, the surety company is not obligated to perform. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 24

25 Conclusion After analyzing the risks involved with a particular project, consider how surety bonds protect against those risks. When a reputable surety company bonds a contractor, you, your banker, and investors are protected because: The contractor has undergone a rigorous prequalification process and is judged capable of fulfilling the obligations of the contract; Contractors are more likely to complete bonded projects than non-bonded projects since the surety company may require personal or corporate indemnity from the contractor; Subcontractors have no need to file mechanics' liens on the project when a payment bond is in place; Surety companies may prevent default by offering technical, financial, or management assistance to a contractor; and The surety company fulfills the contract in the event of contractor default. Any contractor - whether in business for one year or 100, large or small, experienced or novice - can experience serious problems. Through the years surety bonds have held fast as a comprehensive and reliable instrument for minimizing the risks in construction. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 25

26 Surety Bonds at Work Table of Contents Surety Bonds: Seeing Projects to Completion Surety Provides Working Capital Surety Guarantees Bank Loans Surety Provides Technical Assistance Surety Replaces Contractor Surety Completes the Project Surety Saves Project From Subcontractor Failure Surety Mediation Prevents Default The Cost of Not Bonding Note: Some contract amounts in the below case studies have been adjusted to reflect current contract dollars. Surety Bonds: Seeing Project to Completion Construction represents 10% of the U.S. Gross Domestic Product according to the U.S. Census Bureau. This $845 billion industry comprises nearly 650,000 construction companies and 5.7 million workers. With unparalleled competition in recent years, less predictable profit margins, and increased preferences by project owners for fixed price contracts and design-build project delivery, construction is a risky business. Completion is the goal of everyone involved in a construction project. Although the purpose of a surety bond is to assure a qualified contractor capable of completing the project, contractors do experience problems, and default does occur. Fortunately, surety bonds protect private and public owners from the enormous costs of contractor default. Surety companies pay millions of dollars in claims each year and provide financial and technical assistance to contractors so you get what you contracted for a completed project. The surety industry plays an important role in the construction industry s success. The following case studies illustrate the many ways surety companies assure project completion. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 26

27 Surety Provides Working Capital Surety companies may provide financial assistance directly to a bonded contractor, which enables the contractor to continue its work program, pay subcontractors and suppliers, and keep the project moving forward. This assistance may be provided at the contractor s request without the involvement of the project owner and may occur without formal declaration of default. Sureties Chemistry with Contractor & Owner Results in Completed Project A $38.7 million renovation of a 250,000 sq. ft. Bloomingdale s department store into university classrooms was just one of many ongoing projects for a major national contractor. The new facility included a main chemistry classroom building, a large glass enclosed concourse, and a parking garage each with its own completion deadline. The classrooms were top priority they needed to be completed for the start of the semester in January. By July, the project was 61% complete, on time, and on budget. In September, however, the contractor filed for bankruptcy protection. Several subcontractors reduced to skeleton crews or left the site completely, and work was at a near standstill. When a major subcontractor supplying and installing exterior panels was not paid, he ceased work, and the project stopped completely. The co-surety companies got involved early in the bankruptcy proceedings with debtor-inpossession financing. Through a quick infusion of major funding to the contractor and commitments to the major subcontractors to pay for completed and future work, the subcontractors remobilized quickly. In addition, the contractor worked out a staged occupancy plan with the owner and accelerated the schedule. The surety companies maintained a presence at the job site, implementing incentives to keep critical project personnel on the job. The classrooms were finished in January and the concourse was completed for the owner s planned gala opening party in April. According to the university architect, Our entire organization was a bit anxious about the completion of this important facility after learning of the unfortunate bankruptcy filing by the contractor. However we were extremely pleased with the prompt and professional action taken by [the surety companies], which allowed the project to maintain its momentum by retaining the existing and effective management team of construction professionals. In all candor, it was a seamless transition which was undetectable to those unaware of the circumstances. Surety Stands by Its Contractor Shortly after its initial public offering, a large general contractor encountered financial difficulties. The contractor had significant losses on two projects and expected a $2 million loss on hotel projects that were behind schedule. In addition, the contractor s core clients, major The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 27

28 retailers, cut back expansion plans that fostered the construction company s growth. As a result, the contractor cut staff 40% to lower operating costs. To keep the contractor afloat, its sureties offered financial assistance. The majority owners of the construction company entered a joint control and escrow agreement that allowed the sureties to fund the completion of contracts and pay vendors in exchange for an interest in the construction company s two million shares of stock. The contractor completed its work and pursued an aggressive marketing campaign. Within two years, the company s sales were $54.5 million. The construction company owner said that the firm is gratified by the surety s assistance and obvious display of confidence in our experienced construction team. Exploding Pilings Cause Contractor Headache A $43 million bridge contract was over budget, and the contractor had given up any hope of a profit. With the job 95% complete, the bridge pilings began exploding -along with the contractor s hopes of completing the project. When the State Highway Department stopped all payments to the contractor, including a large earned sum, the surety was called in to investigate. The surety advanced $4.5 million to the contractor and arranged analysis of why the pilings exploded in order to corrected the problem. Because the surety was notified in a timely manner, it was able to prevent contractor default. This assistance: kept the contractor from bankruptcy; completed the bridge promptly for public use; saved the owner from the delay of re-bidding the contract; and assured payments to subcontractors who were on the verge of bankruptcy themselves. Firm Falls Apart, Surety Sends Rescue Team The president and vice president of a highway-contracting firm were killed in an airplane crash. The heirs brought in a new management team who managed 21 contracts worth $109.5 million. Within a short time the formerly successful operation was in financial difficulty. With $27 million in work remaining, the firm owed $8 million to subcontractors and suppliers and had no cash flow. The surety brought in two recently retired successful highway contractors who determined that the company was a good organization. Under their direction, the company liquidated an equipment repair plant and set up effective cost accounting methods. The surety infused $6.8 million into the contractor s company, including $1.7 million to complete a nonbonded project to avoid jeopardizing the bonded projects. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 28

29 Flood of Work Nearly Drowns Contractor Building a hurricane and tidal flood barrier to protect a commercial and industrial section of town would ordinarily be a piece of cake for this experienced highway and bridge contractor. However, after contract modifications and equipment delivery delays caused a $25 million deficit, the contractor turned to his surety for help. Compounding the problem was the contractor s excessive overhead, inadequate planning, and insufficient longterm financing. The surety company s investigation confirmed that the contractor was performing quality work and could complete the project with support from the surety. Rather than re-bid the contract, face a delay in completion, and subject the area to exposure in the event of a catastrophic storm, the surety quickly decided to finance the contractor. The surety continued to provide financial assistance over a 10-year period. During that time, the contractor performed federal, state, and municipal contracts in excess of $410.6 million. Prompt intervention by the surety prevented a serious default and saved the project owners substantial sums by maintaining competitive bidding in the state and contributing to its economic development. Surety Guarantees Bank Loans When the surety becomes aware of a contractor s financial difficulties, it may guarantee a line of bank credit. This assures a steady flow of materials to the work site and payments to subcontractors. Pollution Control Project Exhausts Funds A city awarded an $82 million contract as a massive pollution control effort to a joint venture of three contractors, two of which were large, experienced firms with tunneling expertise. As the work progressed, the joint venture experienced numerous unforeseen problems and conditions that resulted in a significant cost increase. The three contractors contributed corporate assets, but the operating fund was exhausted. The contractors sureties analyzed the situation, using an internationally known tunnel expert to establish completion costs. The sureties evaluated the financial position of each joint venture and the ability of each to contribute talent and labor. The joint venture requested financial assistance to complete the project. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 29

30 The sureties guaranteed a $6.8 million revolving loan. With adequate financing, the project continued with no interruption of work, no changes in method of payments, and no intervention by the city. Caught Between a Rock and a Hard Place A $26.5 million contract with the U.S. Army Corps of Engineers called for the construction of a port facility for another nation as part of a foreign aid package. The contractor was required to excavate rock from a specified area and then construct a pier and protective area with this rock. The contractor was also required to dredge a channel and create a harbor. When the area didn t yield the right type of rock, the Corps told the contractor to find it elsewhere. This proved to be a costly and fruitless search. The Corps then agreed to accept rock of less density and weight. However, this increased the contractor s cost so substantially that all his working capital and bank credit was soon exhausted. On the verge of default, the contractor sought financial assistance from the co-sureties. The co-sureties paid off loans, and arranged a guaranteed line of credit for the contractor, who borrowed $19 million to complete the contract. The total cost exceeded $53 million, but with continued bonding and new profitable work, the contractor survived and continued in business. Embezzlement Leaves Contractor Short Employee embezzlement left a contractor, who had a healthy workload of more than $56.7 million, with little working capital. Banks stopped credit and called in their loans. The contractor faced default on several large federal contracts in various stages of completion. The surety spent $11.8 million to pay outstanding bills, assisted the contractor with guaranteed bank loans, and avoided default on all jobs including several urgent NASA and military contracts. Because of the surety s involvement, the work continued without delay. Non-bonded Jobs Cause Near Default A general building contractor suffered serious losses on non-bonded shopping center contracts when the owners became insolvent. This impaired the contractor s working capital and bank credit so drastically that he was on the verge of defaulting on several bonded contracts. The contractor contacted the surety, who arranged a $2 million guaranteed loan. The contractor completed all work without incident and the owners were never fully aware of the contractor s financial dilemma. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 30

31 Surety Provides Technical Assistance The professional expertise of the surety company and surety bond producer can minimize problems and losses on a project. Many sureties employ professional engineers, accountants, and other technical staff or advisors that can help a contractor succeed Surety Speeds Rush Hour Traffic Rush hour commutes are frustrating enough, but when a major artery is undergoing construction, it can be intolerable. When construction is delayed due to contractor failure, it s torture. An $18.4 million construction contract in Leon County, Florida called for the widening of a major roadway from four lanes to eight at the busiest intersection in the City of Tallahassee. The contract called for the construction of a fly-over bridge, access ramps, improvements to several feeder roads, and access points to dozens of businesses. When the contractor faced financial difficulties, the surety company worked closely with him to maintain normal business operations. The surety company s claims team was comprised of a regional claims manager and claims representative, home office accountants, an engineer, and external consultants. The surety also retained a consulting firm familiar with contractor default. The consulting firm reviewed all project payments to subcontractors and suppliers and provided technical assistance on the day-to-day operations. The surety kept a firm hand on the pulse of the project with frequent visits by the surety s Construction Services Manager an engineer by training. The team of professionals worked together to review the contract, analyze the information, and develop a plan to complete the project. Their vast experience provided the essential elements necessary to address many circumstances that arose during the project s completion. The surety entered into a financial assistance agreement with the contractor to facilitate project completion. In accordance with this agreement, the project owner deposited all contract payments into a checking account held jointly by the contractor and surety. The account was controlled by the surety to ensure all contract funds were used for the payment of labor and materials used on the project. To keep operations running smoothly and the public informed of progress, the surety and the county hired a public relations firm to keep motorists informed of construction updates, traffic rerouting, and access restrictions. The project continued without interruption and was completed ahead of schedule. The County Board of Commissioners expressed its appreciation to the surety for its role in the timely completion of the road project. The Board stated, [The surety] has proven its resourcefulness and dedication to efficient and smooth running operations, and completion was a result of [the surety s] quest for excellence and proven service. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 31

32 Surety Bond Saves Penn State Season Which was more difficult to accomplish? Finishing construction on the 15,000-seat Bryce Jordan Center at Penn State University in time for the Nittany Lions long-awaited Big Ten basketball showdown against Indiana? Or...Penn State winning that game against a formidable foe then Hoosier Coach Bobby Knight? As it turned out, neither was insurmountable, despite some preseason predictions to the contrary. [The Bryce Jordan Center] isn t going to be ready for [Penn State s home opener] unless you bring in some construction people from Mars, said Knight, noting the significant amount of unfinished work on a visit to State College, Pennsylvania in the summer of There s no American construction company that will get that done. Penn State doesn t have the depth to challenge for the Big Ten Championship, said several league prognosticators before the season started. So much for crystal balls. The Bryce Jordan Center was indeed ready for Penn State s surprising victory over Indiana and it was also available for the win over Minnesota 16 days earlier. In fact, the Nittany Lions liked their new home so much they finished second in the Big Ten standings and won an NCAA Championship series berth. What behind-the-scenes forces enabled the speedy completion of the athletic complex when bad weather and financial difficulties of the general contractor threatened to delay its debut? The situation at Penn State is an example of a contract surety bond working to perfection. Finishing construction on the Center on time seemed impossible after severe weather problems wreaked havoc on the construction schedule. The project was only 28 percent complete in February 1995 while 68 percent of the scheduled time had elapsed. The construction company, which helped build the Houston Astrodome and other sports arenas, was close to shutting down the project because of financial difficulties. With the basketball season less than a year away, a shutdown was unacceptable to all parties. The surety recognized the importance of maintaining continuity on the job and arranged for the contractor s management team to work with a new contractor. Their managers were vital, said the new company s Project Executive. They knew the drawings, submittals, and the process. We could never have accomplished this without the full cooperation of officials from the two construction companies, Penn State and the surety. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 32

33 Due to the surety s intervention and support, the schedule was reworked and additional subcontractors and general contractors were hired to carry out various aspects of the job that had been done by the original contractor alone. The number of craft workers grew from 310 to 590 working two shifts for six and seven days a week. A combination of prompt intervention, commitment of resources, and considerable financial support from the surety company got the project back on track and the doors to the arena open in time for an uninterrupted string of Penn State home victories. To Students Dismay, School Completed on Time A contractor specializing in school construction had six projects underway when the school district declared him in default on a junior high school. This school was desperately needed by the fast-growing school district. But the contractor was on the brink of collapse and the declaration of default was the final straw. The surety felt that the contractor could complete all six projects. An engineering and accounting survey revealed cash flow problems so the surety infused $3 million and employed a construction engineer and project superintendent. To the students dismay, their junior high school opened on time that fall. Surety Sends Team to Prison A construction firm began work on an $8 million prison project. Initially, work proceeded on schedule. Soon, however, the contractor encountered difficulties with the project s specifications and drawings, which needed clarifications from the owner s project management team. Progress slowed as the owner took increasingly longer periods to respond to the contractor s Requests for Information (RFI) and change order requests. Tensions mounted, the work slowed to a grinding halt, and the project quickly fell behind schedule. Several months later, the owner s project management team still had not addressed many of the construction issues critical to project completion. As the project slowed, so did payment to the contractor. To compound the contractor s cash flow problems, he was unable to collect a large receivable on an unrelated non-bonded job. The contractor turned to his surety for assistance with completing the bonded prison job. The surety dispatched its claims team to the job site. After conducting its inspection of the construction site and financial review of the contractor, they resolved immediate cash problems by advancing $500,000 to pay subcontractors and suppliers. They also appointed an on-site construction representative who monitored the contractor s work and helped the contractor and the owner s project management team resolve the outstanding RFI and change orders. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 33

34 Finally, the surety supplemented the project management team with six additional engineers and job superintendents. This enhanced the contractor s coordination of the work and the project was completed successfully. Surety Bails Out Sewer & Water Contractor Life was good for a large sewer, water, and tunneling contractor. He had completed $34 million in projects with an aggregate workload of $68 million. He had bid 600 jobs in the last two years. Then his bank line of credit dried up, and more problems followed. Two projects worth $30.8 million had unusually high start-up costs. Labor problems on another project resulted in two years of substantial losses. More than $1.7 million in retainage was tied up in litigation for two years and he expected an additional $2.7 million in retainage to be frozen as well. What s a contractor to do? Call the surety, who Analyzed the bids on a $30.8 million project that had just begun; Investigated the status of retainage litigation; Appraised the contractor s equipment and recommended that some be sold; Analyzed the contractor s organization from field supervisors to top management; Developed a cash flow projection based on anticipated completion of all work in progress; Worked with the banks to develop a payment schedule for equipment loans; and Arranged bank credit for additional working capital up to $4.5 million (the contractor eventually used $3.3 million). The surety got the contractor back on track before the contractor s problems affected the project, which protected the contractor s reputation and standing in the industry. Seventy-five employees and more than 400 material suppliers and subcontractors were paid. The contracts were completed without disruption and the owners and engineers were unaware of the surety s involvement. Although the contractor s retainage remained frozen, the surety s assistance was discontinued three months ahead of the projected date. Surety Replaces Contractor There are times when a contractor cannot complete a project whether due to unforeseen changes in the job, economic conditions, or other reasons that cause a contractor to default. When this happens, the surety may bring in a replacement contractor to finish the job. Paying the Bond Premium is Cheaper than the Alternative A well-established, family-owned contracting company had 16 bonded projects underway. When the State of California began licensing contractors, this company received the second license The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 34

35 issued, but even contractors that have been in business for years can run into trouble. In this case, the last surviving family member had sold the company to five employees six years earlier. The contractor was working on a bonded $20 million school building project that had significant cost overruns. It was the beginning of a huge financial strain on the company, which started spreading to the contractor s other projects. The company defaulted on four projects: three senior citizen homes and one low-income community rehabilitation center. The default was a serious situation because many people would not be able to occupy their new living facilities. Furthermore, delays could result in a substantial loss in funding from the U.S. Department of Housing and Urban Development (HUD) and tax credits. The surety acted swiftly by hiring a replacement contractor with an excellent track record on HUD projects. A special team was assembled to handle the complex federal and state documentation required to keep the job on track and in compliance with HUD regulations. The original subcontractors, laborers, and suppliers were retained and paid for completed work. The surety satisfied all the liens on the projects and all necessary paperwork moved through channels without delay. The work was completed on time with no loss of tax credits or special financing. Most importantly, residents were able to occupy the premises in time to satisfy agency deadlines. The owner was protected from financial loss and four important projects were finished on time. Without a bond, the loss to the owner on these four bonded projects would have been $1.86 million dollars. The premium on the bond that protected the owner from that expense was only $129,290. Owner to Surety, Job Well Done A California specialty contractor with a long history of successful projects faced financial disaster after the managing shareholder of this family-owned business suffered a stroke. An inexperienced son-in-law took over but was unable to manage the company successfully. Finances were in serious disarray, and past due federal tax and bank loan obligations totaled several hundred thousand dollars. As a result, the contractor voluntarily defaulted on six bonded projects, of which four were not completed. More than 85 subcontractors and suppliers filed claims against the payment bond. Because of timely investigation and intervention, the surety worked with the project s owners to replace the contractor on one project and took over and completed work on two other projects. The surety also paid the penal sum of the bond on another project that had barely begun. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 35

36 One project owner wrote, [The completion contractor under the takeover agreement] has completed all of the work required and all of the additional warranty and corrective work that was necessary to satisfactorily complete the project. Your cooperation and professionalism in handling this contract has been appreciated. Surety Digs in to Relet Work An excavation contractor in the southeast had eight projects in progress when infighting among the company s stockholders began. The dispute resulted in substantial operating losses and ultimately the contractor was forced to dissolve the business. The contractor withdrew all of its work forces from both its bonded and unbonded projects and called the surety for assistance. The surety quickly investigated and arranged meetings with the eight owners within 72 hours of the contractor withdrawing forces. Within three weeks, the surety successfully relet all eight uncompleted projects, tendering four new contractors and taking over the balance of the work and subcontracting to a completion contractor. The surety sustained a $2.5 million loss after reletting all of the projects and satisfying all of the outstanding labor and material payment bond claims. What Else Is Your Contractor Doing? Surety companies and bond producers have a unique perspective of the contractor s business because they investigate the contractor s entire business operation, including bonded and nonbonded contracts. While a contractor may be performing adequately on your project, it may be failing on another. With no warning, a contractor on a wastewater treatment plant in Leesburg, Virginia, declared itself in default on two projects for the plant totaling $16 million. According to town officials, the contractor had been doing excellent work. However, the contractor experienced problems on an unrelated project that affected its entire business. The surety company proposed a new contract with a new company organized by the principals of the old construction company and bonded the new corporation. Since existing personnel were used, the surety company had the project up and running with only a two-month delay, which was critical to insure continued funding on the project. One town official noted, This was the smoothest transition in a default I have ever seen. Surety Completes the Project One of a surety s options is to take over completion of the project. The surety generally negotiates a formal takeover agreement with the owner. This option may be used when the project is substantially complete or key contractor personnel and subcontractors are crucial to project completion. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 36

37 Surety Steps into Contractor s Shoes When the contractor on a $30 million student activity center for a prominent southeastern university became overwhelmed with problems and setbacks, the surety company made sure the project proceeded as scheduled. The initial schedule called for completion in two years. However, subcontractor financial problems and performance defects, architect/engineer design and supervision deficiency, a lack of skilled labor and materials due to various concurrent projects, and adverse weather caused substantial, unforeseeable delays. After two years, the project was nowhere near completion, so the owner declared the contractor in default and turned over project completion to the surety company. The surety company hired a new construction manager, but retained the project staff of the original contractor organization. The owner extended the completion date. The surety company authorized overtime, including work on weekends. Due to continued problems with the architect/engineer and certain subcontractors, a substantial amount of corrective work was necessary to complete the project to owner satisfaction. The project was finished in time for the fall semester, just four months past the extension date. The surety company experienced an eight-figure loss, but the owner received the end product it was looking for. The vice president for business and finance wrote, The surety company handled a bad situation as professionally and ably as we believe possible. I especially appreciate your seeing that the project was fully completed to the high standards of our original expectations. We are very proud of the facility and aware that its quality reflects in large measure your intervening hand. We never felt abandoned. Surety s Quick Thinking Keeps Subs Paid and On the Job A contractor hired by a local government to construct a municipal building abandoned the project with 75% of the structure completed. The owner declared the contractor in default and called upon the surety for completion. In order to meet its obligations and minimize loss, the surety hired a construction management consultant. The surety needed to respond quickly since the building would suffer extensive damage if not finished before winter. The partially completed building had neither heat nor insulation. The surety and management consultant visited the job site to determine the condition of the work site, quality of work already completed, and the new projected completion date. After reviewing all available options, the surety decided to expedite the project by using the original 28 subcontractors and 12 specialty suppliers who were already familiar with the project. The surety hired a field superintendent to monitor the project on a weekly basis and report progress to the construction management consultant and the surety. Additionally, the surety and architect reviewed payment claims and convinced the project owner to pay subcontractors and The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 37

38 suppliers for completed work. Within four weeks after the subs returned, the municipality obtained a Substantial Completion Certificate followed by a full Certificate of Occupancy four weeks later. Because of the surety s prompt investigation and assessment of the situation, the owner cooperated in paying subs and suppliers, thus keeping them on the project. Cost to complete the project was $356,034. Surety Saves Project From Subcontractor Failure Subcontractors are vital to project completion. A subcontractor who is unqualified or has not been paid can affect your project. Surety companies pay hundreds of millions of dollars in losses each year much of it to subcontractors. Surety Keeps Job Moving Without Key Subcontractor A subcontractor sustained losses on a number of bonded contracts and didn t have the cash flow to handle job costs on a $24 million subcontract for the installation of reinforcing steel and concrete at a large building complex, even though the prime contractor furnished the concrete and reinforcing steel. The surety advanced funds for payroll and critical bills to keep the job moving. When it became apparent that the subcontractor still could not continue, the surety arranged for the prime contractor to employ the subcontractor s work force while it found a new subcontractor. The surety and prime contractor jointly arranged contract terms with the new subcontractor and the surety purchased heavy equipment to avoid disruption of the work schedule. The new subcontractor started operations after a brief one-week shut down and mobilization period. The owner was aware that a key subcontractor had defaulted and observed the subsequent events, but did not in any way participate in the arrangements. The architect for the owner estimated that throughout the default and relet period, less than three days production was lost. The new subcontractor made up for lost time and completed the project on schedule. The owner s representatives expressed appreciation to all parties for the smooth transition. The surety paid $4 million in completion costs and $3 million to subcontractors and for correction of defective work. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 38

39 Surety Gives Green Light for Traffic Control System The Virginia Department of Transportation (VDOT) needed a sophisticated traffic management system on a bridge. The prime contractor hired a subcontractor to design and install the system. Unfortunately, the system was seriously flawed and never performed to the specifications mandated by VDOT. Since the traffic signaling system was a major component of the contract, VDOT filed a claim against the prime contractor and the performance bond. The surety supported the contractor in an exhaustive investigation of the problem. With support from the surety, the contractor tried to correct the technical problems, but despite its best efforts, was unable to provide a workable traffic system. The contractor could not afford the cost of remedial work or the cost of outright replacement. VDOT declared the contractor in default and called upon the surety to correct the problems and complete the contract. The surety promptly solicited proposals from other contractors with expertise in the very technical field of traffic management systems. Even the lowest responsive bid to replace the defective systems with workable ones required hundred of thousands of dollars in excess of remaining contract balances. The surety honored its obligations and provided a check to VDOT for the excess completion costs and tendered an acceptable contractor to complete the contract to VDOT s satisfaction. Performance Bond Insulates Contractor & Owner Owners can help the prime contractor manage risk by requiring performance bonds from subcontractors. When a subcontractor is a significant part of the job or a specialized contractor that is difficult to replace, bonding is a cost-effective way to limit the exposure. On a $500,000 insulation contract for a hospital project, the owner required the subcontractor to be bonded. With no notice and only 40% of the project complete, the subcontractor ceased work, filed for bankruptcy, and disappeared. The surety company contacted subcontractors, obtained bids, and tendered the completing subcontractor to the general contractor, picking up the difference between the contract price and the contract balances without delaying job progress. The general contractor was very satisfied as well as surprised with the response of the surety company in replacing the original contractor and minimizing disruption to the project. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 39

40 Panels Crack, but Bonds Hold Fast A mason was subcontracted to install decorative limestone panels fastened to concrete block and pre-cast concrete panel exterior walls on a four-story savings and loan building. One stipulation was that the grout mixture had to be approved by the architect prior to commencing work. The mason completed the work and paid his labor, but failed to submit the grout mixture to the architect. The mixture he selected contained ingredients that expanded in the presence of limestone and water. Within a year of completion, the panels began to crack around the hangers. Eventually, more than 70% of the panels had to be repaired or replaced. The subcontractor was financially unable to do the repairs as required by the warranty. Because the subcontractor was bonded on the project, the surety company paid $465,000 for additional warranty work on what was originally a $600,000 project. Plumbing Contractor Finances Go Down the Drain A plumbing and HVAC contractor in the Midwest sustained substantial operating losses after diverting funds into a general contracting business. As a result, the contractor s bank cancelled the lines of credit and refused to approve any more loans. The surety quickly conducted an investigation of the contractor s financial condition and elected to provide interim financial assistance while evaluating alternatives. The plumbing and HVAC operations were merged with another entity that assumed completion of all the contractor s work. As work progressed, the surety continued to provide financial support. The surety and the contractor sent voluntary default letters along with the tender agreements to each of the owners to ensure a seamless flow of work. All of the owners accepted the tender agreements and all of the contracts were completed on time and on budget. The surety sustained a net $900,000 loss. The successor contractor continues to operate profitably. Surety Mediation Prevents Default When problems occur on a construction project, it s likely that the relationship between the owner and contractor is strained. Having a third party, the surety, investigate the problem can often result in a workable solution without declaration of default. Surety Company Keeps the Peace A hostile work environment invariably leads to problems on the job. Because the surety company is a third party participant in the completion of the project, it is in a position to help smooth relations between owners and contractors. When an owner s project manager did not get The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 40

41 along with the contractor on a $532 million remodeling project of an historic lodge and garage, the fireworks began. According to the contractor, there were problems from the start, which centered on the owner s demanding and unreasonable project manager. Only two months into the job, the contractor asked the surety company for help and advice after the owner threatened to declare the contractor in default. The surety company spoke with the contractor, then arranged a meeting at the job site with the owner and contractor. What the surety company representative witnessed was three hours of arguing and finger pointing. Realizing the situation was out of hand and work would be delayed without resolution of the problems, the surety company s claims representative talked with the owner and contractor to get an understanding of both sides of the issue. A few days later, the claims representative went to the job site and spoke with the contractor s crew and subcontractors, the project manager, and the owner. The surety company objectively addressed the contractor s deficiencies in performance and offered suggestions for improvements. The surety convinced the owner to remove the project manager from the job and make timely payments to the contractor. The owner and contractor agreed to follow through on the surety company s recommendations. The owner and contractor both acknowledged that things were much improved and the job was progressing well. Since the surety company s involvement, no performance or payment claims were filed. The owner took possession of the building and the contract was completed as scheduled. The contractor appreciated the surety company s involvement, saying It appeared that our company faced termination, but due to the immediate response by the [Surety Company] Loss Control Team, we were able to interface with the owner and resolve issues before the project went completely bad and any legal action developed. Thank you for your professionalism and standing behind your product. Surety Heads Off Litigation with Compromise A medium-sized general contractor obtained a bond for a day care facility at a local junior college. Over the next several months the job proceeded satisfactorily and on schedule. As the project reached substantial completion, the college submitted its punch list to the contractor at the same time the contractor billed for its last progress payment and final retention. The contractor objected to several items on the punch list and refused to correct them. The college refused to honor the contractor s request for payment. The dispute escalated until the college declared a formal default and terminated the contractor s right to proceed with completion of the remaining punch list items. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 41

42 The owner sent a default termination letter to the contractor s surety. The surety promptly met with the contractor to hear his side of the dispute, then met with representatives of the college and heard their side. The surety then called a meeting of both parties at the day care facility where it succeeded in establishing a spirit of compromise. The surety reviewed each item on the punch list and facilitated a resolution, thus avoiding expensive and protracted litigation. The Cost of Not Bonding No matter how well a contractor is screened and no matter how stable the contractor s business is, every project runs the risk of contractor failure. Here s what happened when performance and payment bonds were not required. A Contractor s History Is No Guarantee When Northland College in Ashland, Wisconsin decided to build the $12 million Larson-Juhl Center for Science and the Environment, the Board of Trustees didn t require performance or payment bonds. According to Harold Vanselow, Vice President of Finance and Administration, the college s Board of Trustees chose the contractor because of their history with the college The company had been in business for over 100 years and the owner s great-grandfather laid the first stone for the first building of the college when it was built in A former owner was at one time a trustee himself, and the company had successfully performed other projects for the college. By all accounts, it appeared the college made an informed decision on choosing a contractor. Vanselow stated that, The project continued on schedule and on budget, and the college made all payments to the general contractor in full, and on time. It came as quite a surprise when, after the project was nearly complete, seven subcontractors filed liens totaling nearly $900,000 because the contractor hadn t paid them. Because the Board of Trustees was so eager to develop a great science facility, it did not recognize the value of a bond. The Board believed the $70,000 - $100,000 bond premium could be better used on equipment and supplies for the new building. Now the college must find a way to settle $900,000 in liens on the completed project. Realistically, a contractor with a 100-year history of work on college projects who has successfully completed similar projects for similar contract amounts, and who had a good reputation with the owner doesn t sound like much of a gamble. But the risk in construction often lies in the uncontrollable, unpredictable, and unknown. According to one of the subcontractors on the job, the contractor was having financial difficulties because of some problem jobs a few years earlier. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 42

43 Surety professionals make informed decisions to prequalify the contractor. They look at the financial strength of the contractor, the management structure and ability, the volume and makeup of other work the contractor is performing, as well as the character and reputation of the contractor. Any one of these elements can cause them to fail. This unique relationship with a contractor allows him or her to evaluate each element and guarantee that the contractor can complete the job for the owner. Reputation alone does not complete contracts and a solid contractor can become an insolvent contractor very rapidly if one or more of the elements changes. The small fee for prequalification and the surety s financial guarantee of the project are very valuable products to an owner. The relationship that an owner has with a contractor is arm s length while a surety s relationship is a day-to-day partner. A surety has much greater insight as to a contractor s abilities to perform than any owner could possibly have. No Payment Bond Hurts Owner, Subcontractors & General Contractor Two physicians hired a general contractor to build a medical facility. Construction began in October and was to be finished March 1. By February, the contractor had already received three draws from the construction loan of almost $245,000. The physicians were surprised when subcontractors and suppliers began calling in March to complain that they had not been paid. They confronted the contractor and decided to write future checks directly to the subcontractors and suppliers. The contractor admitted that he was using the doctors funds to bail out other projects. He promised to reimburse them when these projects went into the black. The contractor s good intentions were not enough - not for the doctors and not for the district attorney and the California Supreme Court. The court agreed with the district attorney that it was irrelevant that, at the time of the wrongful diversion, the defendant may have had the purest of intentions and sincerely wanted the project to be completed and the creditors to be paid. Both the district attorney and the court cited the strict wording of California Penal Code. The code specifically calls for completion and payment and that funds diverted in excess of $25,000 was sufficient for a felony conviction. A payment bond would have protected all parties, even the well-intentioned contractor! The Cost of Non-Compliance The failure to obtain surety bonding for a public project can be a costly oversight, as the members of a Missouri school board learned. Board members were held personally liable when they failed to make sure an architectural firm posted a payment bond on a school renovation project. The school district had hired the firm for architectural and engineering services which, in turn, hired another company to perform the mechanical and electrical work. The school district paid the architectural firm but it went out of business without paying the mechanical contractor the $20,145 it was due. The mechanical contractor sued the directors of the school board under a The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 43

44 state law requiring public officials to obtain a payment bond from contractors on public works. The directors argued that the services did not constitute labor under the law. The Missouri court sided with the directors, but the State Court of Appeals reversed the decision. It noted that designers could file liens for work in the private sector and should have bond protection on public jobs. It was the absolute duty of the directors... to require a payment bond, the court said. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 44

45 See footnotes and notes at the end of this section.* Department of the Treasury's Listing of Certified Companies Updated 12/17/2009 ACCREDITED SURETY AND CASUALTY COMPANY, INC. (NAIC #26379) BUSINESS ADDRESS: PO Box , Orlando, FL PHONE: (407) UNDERWRITING LIMITATION b/: $2,047,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Florida. ACSTAR INSURANCE COMPANY (NAIC #22950) BUSINESS ADDRESS: P.O. BOX 2350, NEW BRITAIN, CT PHONE: (860) UNDERWRITING LIMITATION b/: $3,084,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. Aegis Security Insurance Company (NAIC #33898) BUSINESS ADDRESS: P.O. Box 3153, Harrisburg, PA PHONE: (717) UNDERWRITING LIMITATION b/: $3,746,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. ALL AMERICA INSURANCE COMPANY (NAIC #20222) BUSINESS ADDRESS: P.O. BOX 351, VAN WERT, OH PHONE: (419) UNDERWRITING LIMITATION b/: $10,107,000. SURETY LICENSES c,f/: AZ, CA, CT, GA, IL, IN, IA, KY, MA, MI, NV, NJ, NY, NC, OH, OK, TN, TX, VA. INCORPORATED IN: Ohio. Allegheny Casualty Company (NAIC #13285) BUSINESS ADDRESS: PO Box 1116, Meadville, PA PHONE: (814) UNDERWRITING LIMITATION b/: $1,738,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. ALLEGHENY SURETY COMPANY (NAIC #34541) BUSINESS ADDRESS: 4217 Steubenville Pike, Pittsburgh, PA PHONE: (412) UNDERWRITING LIMITATION b/: $208,000. SURETY LICENSES c,f/: PA. INCORPORATED IN: Pennsylvania. See footnotes and notes at the end of this Circular. ALLIED Property and Casualty Insurance Company (NAIC #42579) BUSINESS ADDRESS: ONE WEST NATIONWIDE BLVD., DSPF-76, COLUMBUS, OH PHONE: (515) UNDERWRITING LIMITATION b/: $5,787,000. SURETY LICENSES c,f/: AZ, CA, CO, DE, FL, GA, ID, IL, IN, IA, KS, KY, MD, MI, MN, MO, MT, NE, NV, NM, ND, OH, PA, SC, SD, TN, TX, UT, VA, WA, WI, WY. INCORPORATED IN: Iowa. AMCO Insurance Company (NAIC #19100) BUSINESS ADDRESS: ONE WEST NATIONWIDE BLVD., DSPF-76, COLUMBUS, OH PHONE: (515) UNDERWRITING LIMITATION b/: $41,653,000. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 45

46 SURETY LICENSES c,f/: AZ, CA, CO, DE, GA, ID, IL, IN, IA, KS, KY, MD, MI, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI, WY. INCORPORATED IN: Iowa. AMERICAN ALTERNATIVE INSURANCE CORPORATION (NAIC #19720) BUSINESS ADDRESS: 555 COLLEGE ROAD EAST - P.O. BOX 5241, PRINCETON, NJ PHONE: (609) UNDERWRITING LIMITATION b/: $14,574,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. American Automobile Insurance Company (NAIC #21849) BUSINESS ADDRESS: 777 San Marin Drive, Novato, CA PHONE: (415) UNDERWRITING LIMITATION b/: $21,258,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Missouri. AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA (NAIC #10111) BUSINESS ADDRESS: QUAIL ROOST DRIVE, MIAMI, FL PHONE: (305) x UNDERWRITING LIMITATION b/: $44,986,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Florida. American Casualty Company of Reading, Pennsylvania (NAIC #20427) BUSINESS ADDRESS: 333 S. WABASH AVE, CHICAGO, IL PHONE: (312) UNDERWRITING LIMITATION b/: $11,445,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. See footnotes and notes at the end of this Circular. AMERICAN CONTRACTORS INDEMNITY COMPANY (NAIC #10216) 1 BUSINESS ADDRESS: 601 South Figueroa Street, 16th Floor, Los Angeles, CA PHONE: (310) UNDERWRITING LIMITATION b/: $5,786,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: California. American Economy Insurance Company (NAIC #19690) BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $30,915,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. American Fire and Casualty Company (NAIC #24066) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (513) UNDERWRITING LIMITATION b/: $3,578,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. American Guarantee and Liability Insurance Company (NAIC #26247) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 46

47 BUSINESS ADDRESS: 1400 AMERICAN LANE, TOWER I, 19TH FLOOR, SCHAUMBURG, IL PHONE: (847) UNDERWRITING LIMITATION b/: $15,630,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. American Hardware Mutual Insurance Company (NAIC #13331) BUSINESS ADDRESS: 471 East Broad Street, Columbus, OH PHONE: (614) UNDERWRITING LIMITATION b/: $10,234,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. American Home Assurance Company (NAIC #19380) BUSINESS ADDRESS: 175 Water Street, 18th Floor, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $541,317,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. American Insurance Company (The) (NAIC #21857) BUSINESS ADDRESS: 777 San Marin Drive, Novato, CA PHONE: (415) UNDERWRITING LIMITATION b/: $39,452,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. AMERICAN RELIABLE INSURANCE COMPANY (NAIC #19615) BUSINESS ADDRESS: 8655 EAST VIA DE VENTURA, STE E200, SCOTTSDALE, AZ PHONE: (480) UNDERWRITING LIMITATION b/: $9,986,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Arizona. AMERICAN ROAD INSURANCE COMPANY (THE) (NAIC #19631) BUSINESS ADDRESS: One American Road, MD 7600, Dearborn, MI PHONE: (313) UNDERWRITING LIMITATION b/: $27,107,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Michigan. American Safety Casualty Insurance Company (NAIC #39969) BUSINESS ADDRESS: 100 Galleria Pkwy, S.E. Suite 700, Atlanta, GA PHONE: (770) UNDERWRITING LIMITATION b/: $7,319,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Oklahoma. AMERICAN SERVICE INSURANCE COMPANY, INC. (NAIC #42897) BUSINESS ADDRESS: 150 Northwest Point, Elk Grove Village, IL PHONE: (847) UNDERWRITING LIMITATION b/: $2,167,000. SURETY LICENSES c,f/: AL, FL, GA, HI, IL, IN, IA, MA, MO, NY, ND, OH, PA, TX, VT. INCORPORATED IN: Illinois. American Southern Insurance Company (NAIC #10235) BUSINESS ADDRESS: P O Box , Atlanta, GA PHONE: (404) UNDERWRITING LIMITATION b/: $3,644,000. SURETY LICENSES c,f/: AL, AZ, AR, DE, DC, FL, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 47

48 GA, IL, IN, KS, KY, MD, MN, MS, MO, NE, NJ, NY, NC, OH, PA, SC, TN, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Kansas. American States Insurance Company (NAIC #19704) BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $54,125,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. American Surety Company (NAIC #31380) BUSINESS ADDRESS: 3905 Vincennes Road, Suite 200, Indianapolis, IN PHONE: (317) UNDERWRITING LIMITATION b/: $1,139,000. SURETY LICENSES c,f/: AL, AK, AZ, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WY. INCORPORATED IN: Indiana. Amerisure Mutual Insurance Company (NAIC #23396) BUSINESS ADDRESS: P. O. Box 2060, Farmington Hills, MI PHONE: (248) UNDERWRITING LIMITATION b/: $51,208,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Michigan. Antilles Insurance Company (NAIC #10308) BUSINESS ADDRESS: PO Box , San Juan, PR PHONE: (787) UNDERWRITING LIMITATION b/: $4,762,000. SURETY LICENSES c,f/: PR. INCORPORATED IN: Puerto Rico. Arch Insurance Company (NAIC #11150) BUSINESS ADDRESS: 300 Plaza Three, Jersey City, NJ PHONE: (201) UNDERWRITING LIMITATION b/: $57,701,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Missouri. Arch Reinsurance Company (NAIC #10348) BUSINESS ADDRESS: 360 Mt. Kemble Avenue, P.O. Box 1988, Morristown, NJ PHONE: (973) UNDERWRITING LIMITATION b/: $24,365,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV. INCORPORATED IN: Nebraska. Argonaut Insurance Company (NAIC #19801) BUSINESS ADDRESS: REUNION PLACE, SUITE 500, SAN ANTONIO, TX PHONE: (800) UNDERWRITING LIMITATION b/: $28,872,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WY. INCORPORATED IN: Illinois. Associated Indemnity Corporation (NAIC #21865) BUSINESS ADDRESS: 777 San Marin Drive, Novato, CA PHONE: (415) UNDERWRITING LIMITATION b/: $7,575,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WY. INCORPORATED IN: California. Atlantic Bonding Company, Inc. (NAIC #41114) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 48

49 BUSINESS ADDRESS: 1726 Reisterstown Rd, Ste 212, Pikesville, MD PHONE: (410) UNDERWRITING LIMITATION b/: $796,000. SURETY LICENSES c,f/: FL, MD. INCORPORATED IN: Maryland. Auto-Owners Insurance Company (NAIC #18988) BUSINESS ADDRESS: P.O. BOX 30660, LANSING, MI PHONE: (517) UNDERWRITING LIMITATION b/: $518,068,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, FL, GA, ID, IL, IN, IA, KS, KY, MI, MN, MS, MO, NE, NV, NM, NC, ND, OH, OR, PA, SC, SD, TN, UT, VA, WA, WI. INCORPORATED IN: Michigan. AXIS INSURANCE COMPANY (NAIC #37273) BUSINESS ADDRESS: Great Oaks Way, Ste. 500, Alpharetta, GA PHONE: (678) UNDERWRITING LIMITATION b/: $41,419,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. AXIS Reinsurance Company (NAIC #20370) BUSINESS ADDRESS: Great Oaks Way, Suite 500, Alpharetta, GA PHONE: (678) UNDERWRITING LIMITATION b/: $51,967,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. Bankers Insurance Company (NAIC #33162) BUSINESS ADDRESS: P.O. BOX 15707, ST. PETERSBURG, FL PHONE: (727) UNDERWRITING LIMITATION b/: $4,130,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MS, MO, MT, NE, NV, NM, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV, WY. INCORPORATED IN: Florida. Beazley Insurance Company, Inc. (NAIC #37540) BUSINESS ADDRESS: 30 Batterson Park Road, Farmington, CT PHONE: (860) UNDERWRITING LIMITATION b/: $11,154,000. SURETY LICENSES c,f/: AL, AK, AZ, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KY, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, PA, RI, SD, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Connecticut. Berkley Insurance Company (NAIC #32603) BUSINESS ADDRESS: 475 STEAMBOAT ROAD, GREENWICH, CT PHONE: (203) UNDERWRITING LIMITATION b/: $142,633,000. SURETY LICENSES c,f/: AL, AK, AR, CA, CO, CT, DE, DC, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MT, NE, NV, NM, NY, NC, ND, OH, OK, OR, PA, RI, SD, TN, TX, UT, VT, WA, WV, WI. INCORPORATED IN: Delaware. Berkley Regional Insurance Company (NAIC #29580) BUSINESS ADDRESS: Douglas Avenue, Urbandale, IA PHONE: (203) UNDERWRITING LIMITATION b/: $61,030,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. BITUMINOUS CASUALTY CORPORATION (NAIC #20095) BUSINESS ADDRESS: TH STREET, ROCK ISLAND, IL PHONE: (309) UNDERWRITING LIMITATION b/: $23,742,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. BOND SAFEGUARD INSURANCE COMPANY (NAIC #27081) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 49

50 BUSINESS ADDRESS: Shelbyville Road, Suite 100, Louisville, KY PHONE: (502) UNDERWRITING LIMITATION b/: $1,871,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MN, MS, MO, MT, NV, NH, NJ, NM, NC, ND, OH, OK, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. Brierfield Insurance Company (NAIC #10993) BUSINESS ADDRESS: 6300 University Parkway, Sarasota, FL PHONE: (800) UNDERWRITING LIMITATION b/: $674,000. SURETY LICENSES c,f/: AL, AR, MS, TN. INCORPORATED IN: Mississippi. BRITISH AMERICAN INSURANCE COMPANY (NAIC #32875) BUSINESS ADDRESS: P.O. Box 1590, Dallas, TX PHONE: (214) UNDERWRITING LIMITATION b/: $3,294,000. SURETY LICENSES c,f/: TX. INCORPORATED IN: Texas. Capitol Indemnity Corporation (NAIC #10472) BUSINESS ADDRESS: P.O. Box 5900, Madison, WI PHONE: (608) UNDERWRITING LIMITATION b/: $16,981,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. Carolina Casualty Insurance Company (NAIC #10510) BUSINESS ADDRESS: P. O. BOX 2575, JACKSONVILLE, FL PHONE: (904) UNDERWRITING LIMITATION b/: $21,059,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. Centennial Casualty Company (NAIC #34568) BUSINESS ADDRESS: 2200 Woodcrest Place, Suite 200, Birmingham, AL PHONE: (205) UNDERWRITING LIMITATION b/: $3,869,000. SURETY LICENSES c,f/: AL. INCORPORATED IN: Alabama. CENTRAL MUTUAL INSURANCE COMPANY (NAIC #20230) BUSINESS ADDRESS: P.O. Box 351, VAN WERT, OH PHONE: (419) UNDERWRITING LIMITATION b/: $38,201,000. SURETY LICENSES c,f/: AZ, CA, CO, CT, DE, GA, IL, IN, IA, KY, MA, MI, NV, NH, NJ, NM, NY, NC, OH, OK, PA, TN, TX, VA. INCORPORATED IN: Ohio. CENTURY SURETY COMPANY (NAIC #36951) BUSINESS ADDRESS: P.O. BOX , Columbus, OH PHONE: (614) UNDERWRITING LIMITATION b/: $9,139,000. SURETY LICENSES c,f/: AZ, IN, OH, WV, WI. INCORPORATED IN: Ohio. Cherokee Insurance Company (NAIC #10642) BUSINESS ADDRESS: Mound Road, Sterling Heights, MI PHONE: (800) UNDERWRITING LIMITATION b/: $6,822,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, GA, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NV, NJ, NM, NY, ND, OH, OK, PA, SC, SD, TN, TX, UT, VA, WA, WV, WY. INCORPORATED IN: Michigan. Chrysler Insurance Company (NAIC #10499) 2 BUSINESS ADDRESS: CIMS: , P.O. Box 9217, Farmington Hills, MI PHONE: (800) UNDERWRITING LIMITATION b/: $10,472,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 50

51 MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Michigan. CHUBB INDEMNITY INSURANCE COMPANY (NAIC #12777) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (212) UNDERWRITING LIMITATION b/: $7,249,000. SURETY LICENSES c,f/: AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. Cincinnati Casualty Company (The) (NAIC #28665) BUSINESS ADDRESS: P.O. Box , Cincinnati, OH PHONE: (513) UNDERWRITING LIMITATION b/: $26,268,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Cincinnati Insurance Company (The) (NAIC #10677) BUSINESS ADDRESS: P.O. BOX , CINCINNATI, OH PHONE: (513) UNDERWRITING LIMITATION b/: $309,761,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. See footnotes and notes at the end of this Circular. CITIZENS INSURANCE COMPANY OF AMERICA (NAIC #31534) BUSINESS ADDRESS: 645 W. Grand River Avenue, Howell, MI PHONE: (517) UNDERWRITING LIMITATION b/: $63,829,000. SURETY LICENSES c,f/: AL, GA, IL, IN, KS, ME, MA, MI, MO, NH, NJ, NY, NC, OH, PA, RI, SC, VT, VA, WI. INCORPORATED IN: Michigan. Clearwater Insurance Company (NAIC #25070) BUSINESS ADDRESS: 300 FIRST STAMFORD PLACE, STAMFORD, CT PHONE: (203) UNDERWRITING LIMITATION b/: $50,043,000. SURETY LICENSES c,f/: AL, AK, AZ, CA, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, MD, MI, MS, MO, MT, NE, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. COLONIAL AMERICAN CASUALTY AND SURETY COMPANY (NAIC #34347) BUSINESS ADDRESS: 1400 AMERICAN LANE, TOWER I, 19TH FLOOR, SCHAUMBURG, IL PHONE: (847) UNDERWRITING LIMITATION b/: $2,320,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Maryland. COLONIAL SURETY COMPANY (NAIC #10758) BUSINESS ADDRESS: 50 Chestnut Ridge Road, Montvale, NJ PHONE: (201) UNDERWRITING LIMITATION b/: $1,261,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. Commercial Alliance Insurance Company (NAIC #10906) BUSINESS ADDRESS: 415 Lockhaven Dr., Houston, TX PHONE: (713) UNDERWRITING LIMITATION b/: $1,189,000. SURETY LICENSES c,f/: AL, AZ, GA, KS, LA, MS, NM, OK, TX. INCORPORATED IN: Texas. COMPANION PROPERTY AND CASUALTY INSURANCE COMPANY (NAIC #12157) BUSINESS ADDRESS: P.O. Box , Columbia, SC PHONE: (803) UNDERWRITING LIMITATION b/: $17,949,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 51

52 CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: South Carolina. See footnotes and notes at the end of this Circular. Continental Casualty Company (NAIC #20443) BUSINESS ADDRESS: 333 S. WABASH AVE, CHICAGO, IL PHONE: (312) UNDERWRITING LIMITATION b/: $569,497,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Illinois. CONTINENTAL HERITAGE INSURANCE COMPANY (NAIC #39551) BUSINESS ADDRESS: 6140 PARKLAND BLVD, STE 321, MAYFIELD HEIGHTS, OH PHONE: (440) UNDERWRITING LIMITATION b/: $591,000. SURETY LICENSES c,f/: AZ, CA, FL, ID, IL, IN, IA, LA, MD, MN, MS, NV, ND, OH, PA, SC, TN, TX, UT, VA. INCORPORATED IN: Florida. Continental Insurance Company (The) (NAIC #35289) BUSINESS ADDRESS: 333 S. WABASH AVE, CHICAGO, IL PHONE: (312) UNDERWRITING LIMITATION b/: $140,247,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. CONTRACTORS BONDING AND INSURANCE COMPANY (NAIC #37206) BUSINESS ADDRESS: P.O. BOX 9271, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $9,811,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Washington. Cooperativa de Seguros Multiples de Puerto Rico (NAIC #18163) BUSINESS ADDRESS: P O BOX , SAN JUAN, PR PHONE: (787) UNDERWRITING LIMITATION b/: $21,413,000. SURETY LICENSES c,f/: FL, PR. INCORPORATED IN: Puerto Rico. CUMIS INSURANCE SOCIETY, INC. (NAIC #10847) BUSINESS ADDRESS: P. O. Box 1084, Madison, WI PHONE: (608) UNDERWRITING LIMITATION b/: $44,876,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. DaimlerChrysler Insurance Company (NAIC #10499) 2 Developers Surety and Indemnity Company (NAIC #12718) BUSINESS ADDRESS: P.O. BOX 19725, IRVINE, CA PHONE: (949) See footnotes and notes at the end of this Circular. UNDERWRITING LIMITATION b/: $5,853,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. Employers Insurance Company of Wausau (NAIC #21458) BUSINESS ADDRESS: Post Office Box 8017, Wausau, WI PHONE: (715) UNDERWRITING LIMITATION b/: $75,367,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 52

53 NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. Employers Mutual Casualty Company (NAIC #21415) BUSINESS ADDRESS: P. O. BOX 712, DES MOINES, IA PHONE: (515) UNDERWRITING LIMITATION b/: $72,376,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. Endurance Reinsurance Corporation of America (NAIC #11551) BUSINESS ADDRESS: 333 Westchester Avenue, White Plains, NY PHONE: (914) UNDERWRITING LIMITATION b/: $59,281,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NM, NY, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, WA, WV, WY. INCORPORATED IN: Delaware. Erie Insurance Company (NAIC #26263) BUSINESS ADDRESS: 100 ERIE INSURANCE PLACE, ERIE, PA PHONE: (814) UNDERWRITING LIMITATION b/: $20,953,000. SURETY LICENSES c,f/: DC, IL, IN, KY, MD, MN, NY, NC, OH, PA, TN, VA, WV, WI. INCORPORATED IN: Pennsylvania. Everest Reinsurance Company (NAIC #26921) BUSINESS ADDRESS: P.O. Box 830, Liberty Corner, NJ PHONE: (908) UNDERWRITING LIMITATION b/: $234,238,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: Delaware. See footnotes and notes at the end of this Circular. Evergreen National Indemnity Company (NAIC #12750) BUSINESS ADDRESS: 6140 PARKLAND BLVD, STE 321, MAYFIELD HEIGHTS, OH PHONE: (440) UNDERWRITING LIMITATION b/: $2,555,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WY. INCORPORATED IN: Ohio. Executive Risk Indemnity Inc. (NAIC #35181) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (908) UNDERWRITING LIMITATION b/: $92,173,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. Explorer Insurance Company (NAIC #40029) BUSINESS ADDRESS: P.O. BOX 85563, SAN DIEGO, CA PHONE: (858) x UNDERWRITING LIMITATION b/: $4,174,000. SURETY LICENSES c,f/: AZ, CA, CO, HI, ID, IL, IN, IA, MT, NV, NM, OR, PA, TX, UT, WA. INCORPORATED IN: California. Farmers Alliance Mutual Insurance Company (NAIC #19194) BUSINESS ADDRESS: 1122 North Main Street, McPherson, KS PHONE: (620) UNDERWRITING LIMITATION b/: $14,315,000. SURETY LICENSES c,f/: AZ, CO, ID, IN, IA, KS, MI, MN, MO, MT, NE, NM, ND, OH, OK, SD, TX. INCORPORATED IN: Kansas. Farmington Casualty Company (NAIC #41483) BUSINESS ADDRESS: ONE TOWER SQUARE, HARTFORD, CT PHONE:(860) UNDERWRITING LIMITATION b/: $26,844,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 53

54 NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Connecticut. Farmland Mutual Insurance Company (NAIC #13838) BUSINESS ADDRESS: ONE WEST NATIONWIDE BLVD., DSPF-76, COLUMBUS, OH PHONE: (515) UNDERWRITING LIMITATION b/: $15,210,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, MD, MI, MN, MS, MO, MT, NE, NV, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. See footnotes and notes at the end of this Circular. FCCI Insurance Company (NAIC #10178) BUSINESS ADDRESS: 6300 University Parkway, Sarasota, FL PHONE: (800) x UNDERWRITING LIMITATION b/: $37,006,000. SURETY LICENSES c,f/: AL, AZ, CO, FL, GA, IL, IN, IA, KS, KY, MD, MI, MS, MO, NE, NC, OK, PA, SC, TN. INCORPORATED IN: Florida. Federal Insurance Company (NAIC #20281) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (908) UNDERWRITING LIMITATION b/: $1,114,159,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Indiana. FEDERATED MUTUAL INSURANCE COMPANY (NAIC #13935) BUSINESS ADDRESS: 121 EAST PARK SQUARE, OWATONNA, MN PHONE: (507) UNDERWRITING LIMITATION b/: $180,927,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Minnesota. Fidelity and Deposit Company of Maryland (NAIC #39306) BUSINESS ADDRESS: 1400 AMERICAN LANE, TOWER I, 19TH FLOOR, SCHAUMBURG, IL PHONE: (847) UNDERWRITING LIMITATION b/: $15,542,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Maryland. FIDELITY AND GUARANTY INSURANCE COMPANY (NAIC #35386) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $1,957,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. Fidelity and Guaranty Insurance Underwriters, Inc. (NAIC #25879) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $3,511,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. See footnotes and notes at the end of this Circular. Fidelity National Property and Casualty Insurance Company (NAIC #16578) BUSINESS ADDRESS: 601 Riverside Ave., Bldg. 5, Suite 200, Jacksonville, FL PHONE: (800) UNDERWRITING LIMITATION b/: $8,233,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, MD, MA, MI, MN, MS, MO, MT, NE, NV, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 54

55 NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: New York. Financial Casualty & Surety, Inc. (NAIC #35009) BUSINESS ADDRESS: 3131 Eastside, Suite 600, Houston, TX PHONE: (877) UNDERWRITING LIMITATION b/: $1,069,000. SURETY LICENSES c,f/: AZ, CA, CT, DE, FL, ID, IN, IA, KS, LA, MD, MI, MN, MS, NV, NJ, NY, NC, ND, OH, PA, SC, TN, TX, UT, VT, WA, WV. INCORPORATED IN: Texas. Financial Pacific Insurance Company (NAIC #31453) BUSINESS ADDRESS: P.O. Box , Sacramento, CA PHONE: (916) UNDERWRITING LIMITATION b/: $6,408,000. SURETY LICENSES c,f/: AK, AZ, AR, CA, CO, ID, KS, MO, MT, NE, NV, NM, ND, OK, OR, SD, UT, WA, WI. INCORPORATED IN: California. Fireman's Fund Insurance Company (NAIC #21873) BUSINESS ADDRESS: 777 San Marin Drive, Novato, CA PHONE: (415) UNDERWRITING LIMITATION b/: $286,163,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: California. First Founders Assurance Company (NAIC #12150) BUSINESS ADDRESS: 6 Mill Ridge Lane, Chester, NJ PHONE: (908) UNDERWRITING LIMITATION b/: $239,000. SURETY LICENSES c,f/: NJ. INCORPORATED IN: New Jersey. First Insurance Company of Hawaii, Ltd. (NAIC #41742) BUSINESS ADDRESS: P.O. Box 2866, Honolulu, HI PHONE: (808) UNDERWRITING LIMITATION b/: $18,992,000. SURETY LICENSES c,f/: GU, HI. INCORPORATED IN: Hawaii. See footnotes and notes at the end of this Circular. First Liberty Insurance Corporation (The) (NAIC #33588) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (617) UNDERWRITING LIMITATION b/: $2,168,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Iowa. First National Insurance Company of America (NAIC #24724) BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $6,980,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Washington. First Net Insurance Company (NAIC #10972) BUSINESS ADDRESS: 102 JULALE CENTER, HAGATNA, GU PHONE: (671) UNDERWRITING LIMITATION b/: $634,000. SURETY LICENSES c,f/: GU, MP. INCORPORATED IN: Guam. First Sealord Surety, Inc. (NAIC #28519) BUSINESS ADDRESS: P.O. Box 900, Villanova, PA PHONE: (610) UNDERWRITING LIMITATION b/: $1,146,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CT, DE, DC, FL, GA, IL, IN, IA, KS, KY, MD, MA, MI, MS, MO, NJ, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, VA, WA, WV, WI. INCORPORATED IN: Pennsylvania. FOLKSAMERICA INSURANCE COMPANY (NAIC #38776) 3 General Insurance Company of America (NAIC #24732) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 55

56 BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $44,762,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Washington. General Reinsurance Corporation (NAIC #22039) BUSINESS ADDRESS: Financial Centre, P.O.Box 10350, Stamford, CT PHONE: (203) UNDERWRITING LIMITATION b/: $893,685,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. See footnotes and notes at the end of this Circular. GRANITE RE, INC. (NAIC #26310) BUSINESS ADDRESS: Quailbrook Drive, Oklahoma City, OK PHONE: (405) UNDERWRITING LIMITATION b/: $1,303,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, ID, IL, IN, IA, KS, MI, MN, MS, MO, MT, NE, NV, NM, ND, OH, OK, SD, TN, TX, UT, WI, WY. INCORPORATED IN: Oklahoma. Granite State Insurance Company (NAIC #23809) BUSINESS ADDRESS: 175 Water Street, 18th Floor, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $3,477,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. GRAY CASUALTY & SURETY COMPANY (THE) (NAIC #10671) BUSINESS ADDRESS: P.O. Box 6202, Metairie, LA PHONE: (504) UNDERWRITING LIMITATION b/: $1,416,000. SURETY LICENSES c,f/: AL, AZ, AR, GA, KY, LA, MS, MO, NV, NM, NC, OK, SC, TN, TX. INCORPORATED IN: Louisiana. GRAY INSURANCE COMPANY (THE) (NAIC #36307) BUSINESS ADDRESS: P.O. BOX 6202, METAIRIE, LA PHONE: (504) UNDERWRITING LIMITATION b/: $8,280,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Louisiana. Great American Alliance Insurance Company (NAIC #26832) BUSINESS ADDRESS: 580 Walnut Street, Cincinnati, OH PHONE: (513) UNDERWRITING LIMITATION b/: $2,742,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Great American Insurance Company (NAIC #16691) BUSINESS ADDRESS: 580 Walnut Street, Cincinnati, OH PHONE: (513) UNDERWRITING LIMITATION b/: $128,647,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. See footnotes and notes at the end of this Circular. GREAT AMERICAN INSURANCE COMPANY OF NEW YORK (NAIC #22136) BUSINESS ADDRESS: 580 Walnut Street, Cincinnati, OH PHONE: (513) UNDERWRITING LIMITATION b/: $5,789,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 56

57 CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. Great Northern Insurance Company (NAIC #20303) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (908) UNDERWRITING LIMITATION b/: $38,588,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. Greenwich Insurance Company (NAIC #22322) BUSINESS ADDRESS: Seaview House, 70 Seaview Avenue, Stamford, CT PHONE: (203) UNDERWRITING LIMITATION b/: $44,451,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. Guarantee Company of North America USA (The) (NAIC #36650) BUSINESS ADDRESS: Northwestern Highway, Suite 720, Southfield, MI PHONE: (248) x UNDERWRITING LIMITATION b/: $11,286,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Michigan. Hanover Insurance Company (The) (NAIC #22292) BUSINESS ADDRESS: 440 Lincoln Street, Worcester, MA PHONE: (508) x UNDERWRITING LIMITATION b/: $90,152,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New Hampshire. See footnotes and notes at the end of this Circular. HARCO NATIONAL INSURANCE COMPANY (NAIC #26433) BUSINESS ADDRESS: 702 OBERLIN ROAD, RALEIGH, NC PHONE: (847) UNDERWRITING LIMITATION b/: $13,025,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. Harleysville Mutual Insurance Company (NAIC #14168) BUSINESS ADDRESS: 355 Maple Avenue, Harleysville, PA PHONE: (215) UNDERWRITING LIMITATION b/: $68,000,000. SURETY LICENSES c,f/: AL, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: Pennsylvania. Harleysville Worcester Insurance Company (NAIC #26182) BUSINESS ADDRESS: 355 Maple Avenue, Harleysville, PA PHONE: (215) UNDERWRITING LIMITATION b/: $12,132,000. SURETY LICENSES c,f/: AL, AR, CT, DE, DC, GA, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NY, NC, ND, OH, PA, RI, SC, SD, TN, VT, VA, WV, WI. INCORPORATED IN: Pennsylvania. Hartford Accident and Indemnity Company (NAIC #22357) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 57

58 BUSINESS ADDRESS: One Hartford Plaza, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $199,853,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Connecticut. Hartford Casualty Insurance Company (NAIC #29424) BUSINESS ADDRESS: One Hartford Plaza, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $83,730,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. Hartford Fire Insurance Company (NAIC #19682) BUSINESS ADDRESS: One Hartford Plaza, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $1,249,146,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Connecticut. See footnotes and notes at the end of this Circular. Hartford Insurance Company of Illinois (NAIC #38288) BUSINESS ADDRESS: One Hartford Plaza, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $131,351,000. SURETY LICENSES c,f/: CT, HI, IL, MI, NY, PA. INCORPORATED IN: Illinois. Hartford Insurance Company of the Midwest (NAIC #37478) BUSINESS ADDRESS: One Hartford Plaza, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $24,015,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. Hartford Insurance Company of the Southeast (NAIC #38261) BUSINESS ADDRESS: One Hartford Plaza, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $5,303,000. SURETY LICENSES c,f/: CT, FL, GA, KS, LA, MI, PA. INCORPORATED IN: Connecticut. Hudson Insurance Company (NAIC #25054) BUSINESS ADDRESS: 17 State Street, 29th Floor, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $13,511,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. IMT Insurance Company (NAIC #14257) BUSINESS ADDRESS: P.O. Box 1336, Des Moines, IA PHONE: (515) UNDERWRITING LIMITATION b/: $10,154,000. SURETY LICENSES c,f/: IL, IN, IA, MO, NE, SD, WI. INCORPORATED IN: Iowa. Indemnity Company of California (NAIC #25550) BUSINESS ADDRESS: P.O. BOX 19725, IRVINE, CA PHONE: (949) UNDERWRITING LIMITATION b/: $1,281,000. SURETY LICENSES c,f/: AK, AZ, CA, HI, ID, IN, NV, OR, SC, UT, VA, WA. INCORPORATED IN: California. Indemnity National Insurance Company (NAIC #18468) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 58

59 BUSINESS ADDRESS: 4800 Old Kingston Pike, Knoxville, TN PHONE: (865) UNDERWRITING LIMITATION b/: $1,053,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, GA, KY, LA, MS, NV, NM, OK, SC, TN, TX, UT. INCORPORATED IN: Mississippi. See footnotes and notes at the end of this Circular. Independence Casualty and Surety Company (NAIC #10024) BUSINESS ADDRESS: P.O. BOX 85563, SAN DIEGO, CA PHONE: (858) UNDERWRITING LIMITATION b/: $2,187,000. SURETY LICENSES c,f/: TX. INCORPORATED IN: Texas. Indiana Lumbermens Mutual Insurance Company (NAIC #14265) BUSINESS ADDRESS: 3600 Woodview Trace, Indianapolis, IN PHONE: (800) UNDERWRITING LIMITATION b/: $3,303,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. Inland Insurance Company (NAIC #23264) BUSINESS ADDRESS: P.O. Box 80468, Lincoln, NE PHONE: (402) UNDERWRITING LIMITATION b/: $12,286,000. SURETY LICENSES c,f/: AZ, CO, IA, KS, MN, MO, MT, NE, ND, OK, SD, WY. INCORPORATED IN: Nebraska. Insurance Company of the State of Pennsylvania (The) (NAIC #19429) BUSINESS ADDRESS: 175 Water Street, 18th Floor, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $192,684,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. Insurance Company of the West (NAIC #27847) BUSINESS ADDRESS: P.O. BOX 85563, SAN DIEGO, CA PHONE: (858) x UNDERWRITING LIMITATION b/: $35,260,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: California. Insurors Indemnity Company (NAIC #43273) BUSINESS ADDRESS: P.O. Box 2683, Waco, TX PHONE: (254) x UNDERWRITING LIMITATION b/: $831,000. SURETY LICENSES c,f/: NM, OK, TX. INCORPORATED IN: Texas. INTEGRAND ASSURANCE COMPANY (NAIC #26778) BUSINESS ADDRESS: PO Box 70128, San Juan, PR PHONE: (787) x-200. UNDERWRITING LIMITATION b/: $6,252,000. SURETY LICENSES c,f/: PR, VI. INCORPORATED IN: Puerto Rico. See footnotes and notes at the end of this Circular. International Fidelity Insurance Company (NAIC #11592) 4 BUSINESS ADDRESS: One Newark Center, Newark, NJ PHONE: (973) UNDERWRITING LIMITATION b/: $9,249,000. SURETY LICENSES c,f/: AL, AK, AS, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New Jersey. ISLAND INSURANCE COMPANY, LIMITED (NAIC #22845) BUSINESS ADDRESS: P.O. Box 15 20, Honolulu, HI PHONE: (808) UNDERWRITING LIMITATION b/: $11,379,000. SURETY LICENSES c,f/: HI. INCORPORATED IN: Hawaii. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 59

60 Kansas Bankers Surety Company (The) (NAIC #15962) BUSINESS ADDRESS: P. O. Box 1654, Topeka, KS PHONE: (785) UNDERWRITING LIMITATION b/: $14,021,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, DE, GA, ID, IL, IN, IA, KS, KY, LA, ME, MI, MN, MS, MO, MT, NE, NH, NM, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Kansas. LEXINGTON NATIONAL INSURANCE CORPORATION (NAIC #37940) BUSINESS ADDRESS: 200 East Lexington Street, Suite 501, Baltimore, MD PHONE: (410) UNDERWRITING LIMITATION b/: $1,597,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IN, IA, KS, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WY. INCORPORATED IN: Maryland. Lexon Insurance Company (NAIC #13307) BUSINESS ADDRESS: Shelbyville Rd, Suite 100, Louisville, KY PHONE: (502) UNDERWRITING LIMITATION b/: $3,923,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Texas. Liberty Insurance Corporation (NAIC #42404) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (617) UNDERWRITING LIMITATION b/: $25,541,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. See footnotes and notes at the end of this Circular. Liberty Mutual Fire Insurance Company (NAIC #23035) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (617) UNDERWRITING LIMITATION b/: $82,527,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. Liberty Mutual Insurance Company (NAIC #23043) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (617) UNDERWRITING LIMITATION b/: $663,431,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Massachusetts. LM Insurance Corporation (NAIC #33600) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (617) UNDERWRITING LIMITATION b/: $2,038,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Iowa. Lyndon Property Insurance Company (NAIC #35769) BUSINESS ADDRESS: North Outer Forty Rd., Suite 400, St. Louis, MO PHONE: (636) UNDERWRITING LIMITATION b/: $14,333,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 60

61 MO, MT, NE, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Missouri. MARKEL INSURANCE COMPANY (NAIC #38970) BUSINESS ADDRESS: 4600 Cox Road, Glen Allen, VA PHONE: (800) UNDERWRITING LIMITATION b/: $9,198,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. Massachusetts Bay Insurance Company (NAIC #22306) BUSINESS ADDRESS: 440 Lincoln Street, Worcester, MA PHONE: (508) x UNDERWRITING LIMITATION b/: $4,654,000. SURETY LICENSES c,f/: AL, AR, CA, CO, CT, DC, FL, GA, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NY, NC, OH, OR, PA, RI, SC, TN, TX, VT, VA, WA, WI. INCORPORATED IN: New Hampshire. See footnotes and notes at the end of this Circular. Merchants Bonding Company (Mutual) (NAIC #14494) BUSINESS ADDRESS: 2100 Fleur Drive, Des Moines, IA PHONE: (515) UNDERWRITING LIMITATION b/: $5,035,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. Michigan Millers Mutual Insurance Company (NAIC #14508) BUSINESS ADDRESS: P. O. Box 30060, Lansing, MI PHONE: (517) x-765. UNDERWRITING LIMITATION b/: $8,324,000. SURETY LICENSES c,f/: AZ, AR, CA, CO, GA, ID, IL, IN, IA, KS, KY, MI, MN, MO, MT, NE, NY, NC, ND, OH, OK, OR, PA, SD, TN, VA, WA, WI, WY. INCORPORATED IN: Michigan. Mid-Century Insurance Company (NAIC #21687) BUSINESS ADDRESS: P.O. Box 2478 Terminal Annex, Los Angeles, CA PHONE: (323) UNDERWRITING LIMITATION b/: $60,357,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, FL, GA, ID, IL, IN, IA, KS, KY, MI, MN, MS, MO, MT, NE, NV, NM, NC, ND, OH, OK, OR, PA, SD, TN, TX, UT, VT, VA, WA, WI, WY. INCORPORATED IN: California. MID-CONTINENT CASUALTY COMPANY (NAIC #23418) 5 BUSINESS ADDRESS: P.O. Box 1409, Tulsa, OK PHONE: (918) UNDERWRITING LIMITATION b/: $19,695,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, FL, GA, ID, IL, IN, IA, KS, LA, MD, MI, MN, MS, MO, MT, NE, NM, NC, ND, OH, OK, OR, SC, SD, TN, TX, UT, VA, WA, WY. INCORPORATED IN: Ohio. Minnesota Surety and Trust Company (NAIC #30996) BUSINESS ADDRESS: 107 West Oakland Avenue, Austin, MN PHONE: (507) UNDERWRITING LIMITATION b/: $153,000. SURETY LICENSES c,f/: CO, MN, MT, ND, SD, UT. INCORPORATED IN: Minnesota. Motorists Mutual Insurance Company (NAIC #14621) BUSINESS ADDRESS: 471 East Broad Street, Columbus, OH PHONE: (614) UNDERWRITING LIMITATION b/: $40,927,000. SURETY LICENSES c,f/: IN, KY, MI, OH, PA, WV. INCORPORATED IN: Ohio. See footnotes and notes at the end of this Circular. Motors Insurance Corporation (NAIC #22012) BUSINESS ADDRESS: 300 GALLERIA OFFICENTRE, SOUTHFIELD, MI PHONE: (248) UNDERWRITING LIMITATION b/: $169,236,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 61

62 MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Michigan. Munich Reinsurance America, Inc. (NAIC #10227) BUSINESS ADDRESS: 555 COLLEGE ROAD EAST - P.O. BOX 5241, PRINCETON, NJ PHONE: (609) UNDERWRITING LIMITATION b/: $344,848,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. National American Insurance Company (NAIC #23663) BUSINESS ADDRESS: P.O. Box 9, Chandler, OK PHONE: (405) UNDERWRITING LIMITATION b/: $5,107,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MO, MT, NE, NV, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Oklahoma. National Casualty Company (NAIC #11991) BUSINESS ADDRESS: One West Nationwide Blvd., DSPF-76, Columbus, OH PHONE: (480) UNDERWRITING LIMITATION b/: $10,656,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. NATIONAL FARMERS UNION PROPERTY AND CASUALTY COMPANY (NAIC #16217) BUSINESS ADDRESS: 5619 DTC PARKWAY, SUITE 300, GREENWOOD VILLAGE, CO PHONE: (303) UNDERWRITING LIMITATION b/: $9,564,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Colorado. See footnotes and notes at the end of this Circular. National Fire Insurance Company of Hartford (NAIC #20478) BUSINESS ADDRESS: 333 S. WABASH AVE, CHICAGO, IL PHONE: (312) UNDERWRITING LIMITATION b/: $11,139,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. National Indemnity Company (NAIC #20087) BUSINESS ADDRESS: 3024 Harney Street, Omaha, NE PHONE: (402) UNDERWRITING LIMITATION b/: $2,761,313,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Nebraska. National Surety Corporation (NAIC #21881) BUSINESS ADDRESS: 777 San Marin Drive, Novato, CA PHONE: (312) UNDERWRITING LIMITATION b/: $23,229,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. NATIONAL TRUST INSURANCE COMPANY (NAIC #20141) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 62

63 BUSINESS ADDRESS: 6300 University Parkway, Sarasota, FL PHONE: (800) UNDERWRITING LIMITATION b/: $3,108,000. SURETY LICENSES c,f/: AZ, FL, GA, IL, IN, IA, KY, MD, MI, MS, MO, NE, NC, OK, SC, TN. INCORPORATED IN: Tennessee. National Union Fire Insurance Company of Pittsburgh, PA (NAIC #19445) BUSINESS ADDRESS: 175 Water Street, 18th Floor, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $1,182,542,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. NATIONS BONDING COMPANY (NAIC #11595) BUSINESS ADDRESS: 2100 Fleur Drive, Des Moines, IA PHONE: (515) UNDERWRITING LIMITATION b/: $322,000. SURETY LICENSES c,f/: PA, TX. INCORPORATED IN: Texas. See footnotes and notes at the end of this Circular. Nationwide Mutual Insurance Company (NAIC #23787) BUSINESS ADDRESS: ONE WEST NATIONWIDE BLVD., DSPF-76, COLUMBUS, OH PHONE: (614) UNDERWRITING LIMITATION b/: $1,030,558,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. NAVIGATORS INSURANCE COMPANY (NAIC #42307) BUSINESS ADDRESS: 6 International Drive, Rye Brook, NY PHONE: (914) UNDERWRITING LIMITATION b/: $58,117,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, LA, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. New Hampshire Insurance Company (NAIC #23841) BUSINESS ADDRESS: 175 Water Street, 18th Floor, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $149,468,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. NGM Insurance Company (NAIC #14788) BUSINESS ADDRESS: 55 WEST STREET, KEENE, NH PHONE: (904) UNDERWRITING LIMITATION b/: $58,134,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Florida. NORTH AMERICAN SPECIALTY INSURANCE COMPANY (NAIC #29874) BUSINESS ADDRESS: 650 ELM STREET, MANCHESTER, NH PHONE: (603) UNDERWRITING LIMITATION b/: $21,263,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New Hampshire. NORTHWESTERN PACIFIC INDEMNITY COMPANY (NAIC #20338) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 63

64 BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (503) UNDERWRITING LIMITATION b/: $1,418,000. SURETY LICENSES c,f/: CA, OK, OR, TX, WA. INCORPORATED IN: Oregon. See footnotes and notes at the end of this Circular. NOVA Casualty Company (NAIC #42552) BUSINESS ADDRESS: Suite 1020, 726 Exchange Street, Buffalo, NY PHONE: (716) UNDERWRITING LIMITATION b/: $8,604,000. SURETY LICENSES c,f/: AL, AK, AZ, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WY. INCORPORATED IN: New York. Ohio Casualty Insurance Company (The) (NAIC #24074) BUSINESS ADDRESS: 9450 Seward Road, Fairfield, Ohio PHONE: (513) UNDERWRITING LIMITATION b/: $79,260,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Ohio Farmers Insurance Company (NAIC #24104) BUSINESS ADDRESS: P. O. Box 5001, Westfield Center, OH PHONE: (330) UNDERWRITING LIMITATION b/: $107,555,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, DE, DC, FL, GA, IL, IN, IA, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Ohio Indemnity Company (NAIC #26565) BUSINESS ADDRESS: 250 East Broad Street, 7th Floor, Columbus, OH PHONE: (614) UNDERWRITING LIMITATION b/: $4,517,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Oklahoma Surety Company (NAIC #23426) 6 BUSINESS ADDRESS: P.O. Box 1409, Tulsa, OK PHONE: (918) UNDERWRITING LIMITATION b/: $1,269,000. SURETY LICENSES c,f/: AR, KS, LA, OH, OK, TX. INCORPORATED IN: Ohio. OLD DOMINION INSURANCE COMPANY (NAIC #40231) BUSINESS ADDRESS: 55 WEST STREET, KEENE, NH PHONE: (904) UNDERWRITING LIMITATION b/: $2,615,000. SURETY LICENSES c,f/: CT, DE, FL, GA, ME, MD, MA, NH, NY, NC, PA, RI, SC, TN, VT, VA. INCORPORATED IN: Florida. See footnotes and notes at the end of this Circular. Old Republic General Insurance Corporation (NAIC #24139) BUSINESS ADDRESS: 307 NORTH MICHIGAN AVENUE, CHICAGO, IL PHONE: (312) UNDERWRITING LIMITATION b/: $25,521,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. Old Republic Insurance Company (NAIC #24147) BUSINESS ADDRESS: P.O. Box 789, Greensburg, PA PHONE: (724) UNDERWRITING LIMITATION b/: $80,483,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. Old Republic Surety Company (NAIC #40444) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 64

65 BUSINESS ADDRESS: P.O. BOX 1635, MILWAUKEE, WI PHONE: (262) UNDERWRITING LIMITATION b/: $4,279,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, DC, FL, GA, ID, IL, IN, IA, KS, MD, MN, MS, MO, MT, NE, NV, NM, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. OneBeacon America Insurance Company (NAIC #20621) BUSINESS ADDRESS: One Beacon Lane, Canton, MA PHONE: (781) UNDERWRITING LIMITATION b/: $29,629,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Massachusetts. OneBeacon Insurance Company (NAIC #21970) BUSINESS ADDRESS: One Beacon Lane, Canton, MA PHONE: (781) UNDERWRITING LIMITATION b/: $86,964,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. Pacific Indemnity Company (NAIC #20346) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (908) UNDERWRITING LIMITATION b/: $183,174,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. See footnotes and notes at the end of this Circular. PACIFIC INDEMNITY INSURANCE COMPANY (NAIC #18380) BUSINESS ADDRESS: 348 WEST O'BRIEN DRIVE, HAGATNA, GU PHONE: (671) UNDERWRITING LIMITATION b/: $682,000. SURETY LICENSES c,f/: GU, MP. INCORPORATED IN: Guam. PARTNER REINSURANCE COMPANY OF THE U.S. (NAIC #38636) BUSINESS ADDRESS: ONE GREENWICH PLAZA, GREENWICH, CT PHONE: (203) UNDERWRITING LIMITATION b/: $50,463,000. SURETY LICENSES c,f/: AL, AK, AZ, CA, CO, DC, IL, KS, MI, MS, NE, NY, OH, TX, UT, WV. INCORPORATED IN: New York. PARTNERRE INSURANCE COMPANY OF NEW YORK (NAIC #10006) BUSINESS ADDRESS: One Greenwich Plaza, Greenwich, CT PHONE: (203) UNDERWRITING LIMITATION b/: $10,368,000. SURETY LICENSES c,f/: AL, AZ, CA, CO, DE, DC, ID, IL, IN, IA, KS, KY, MD, MI, MN, MS, MT, NE, NJ, NM, NY, ND, OH, OK, OR, PA, RI, SC, SD, TX, UT, VT, WA, WV, WI. INCORPORATED IN: New York. Peerless Insurance Company (NAIC #24198) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (603) UNDERWRITING LIMITATION b/: $193,624,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New Hampshire. Pekin Insurance Company (NAIC #24228) BUSINESS ADDRESS: 2505 COURT STREET, PEKIN, IL PHONE: (309) UNDERWRITING LIMITATION b/: $8,502,000. SURETY LICENSES c,f/: IL, IN, IA, MI, OH, WI. INCORPORATED IN: Illinois. Penn Millers Insurance Company (NAIC #14982) BUSINESS ADDRESS: P.O. BOX P, WILKES-BARRE, PA PHONE: (570) UNDERWRITING LIMITATION b/: $4,283,000. SURETY LICENSES c,f/: AL, AR, CO, CT, DE, DC, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 65

66 FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NY, NC, OH, OR, PA, RI, SC, TN, TX, VT, VA, WA, WV, WI. INCORPORATED IN: Pennsylvania. See footnotes and notes at the end of this Circular. Pennsylvania General Insurance Company (NAIC #21962) BUSINESS ADDRESS: One Beacon Lane, Canton, MA PHONE: (781) UNDERWRITING LIMITATION b/: $12,814,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, GA, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Pennsylvania. Pennsylvania National Mutual Casualty Insurance Company (NAIC #14990) BUSINESS ADDRESS: P. O. Box 2361, Harrisburg, PA PHONE: (717) UNDERWRITING LIMITATION b/: $42,716,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: Pennsylvania. PHILADELPHIA INDEMNITY INSURANCE COMPANY (NAIC #18058) BUSINESS ADDRESS: One Bala Plaza, Suite 100, Bala Cynwyd, PA PHONE: (610) x UNDERWRITING LIMITATION b/: $120,504,000. SURETY LICENSES c,f/: AL, AK, CA, CO, DE, DC, HI, ID, IL, IN, IA, KY, MD, MA, MN, MS, MO, MT, NE, NV, NH, NJ, NC, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: Pennsylvania. Pioneer General Insurance Company (NAIC #12670) BUSINESS ADDRESS: 333 W. Hampden Avenue, Suite 815, Englewood, CO PHONE: (303) UNDERWRITING LIMITATION b/: $672,000. SURETY LICENSES c,f/: AZ, CO, KS, MO, MT, NE, NV, NM, UT, WY. INCORPORATED IN: Colorado. PLATTE RIVER INSURANCE COMPANY (NAIC #18619) BUSINESS ADDRESS: P.O. Box 5900, Madison, WI PHONE: (608) UNDERWRITING LIMITATION b/: $2,972,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Nebraska. Plaza Insurance Company (NAIC #30945) BUSINESS ADDRESS: 700 West 47th Street, Suite 350, Kansas City, MO PHONE: (816) UNDERWRITING LIMITATION b/: $1,021,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MS, MO, MT, NE, NV, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA, WV, WI, WY. INCORPORATED IN: Missouri. See footnotes and notes at the end of this Circular. ProCentury Insurance Company (NAIC #21903) BUSINESS ADDRESS: PO Box , Columbus, OH PHONE: (614) UNDERWRITING LIMITATION b/: $3,123,000. SURETY LICENSES c,f/: AK, AZ, AR, CA, DE, DC, GA, IN, IA, KS, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, ND, OK, PA, SC, SD, TX, UT, WV, WI, WY. INCORPORATED IN: Texas. Progressive Casualty Insurance Company (NAIC #24260) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 66

67 BUSINESS ADDRESS: P.O. BOX 89490, CLEVELAND, OH PHONE: (440) UNDERWRITING LIMITATION b/: $121,451,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Protective Insurance Company (NAIC #12416) BUSINESS ADDRESS: PO Box 7099, Indianapolis, IN PHONE: (317) x-356. UNDERWRITING LIMITATION b/: $20,489,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. Republic - Franklin Insurance Company (NAIC #12475) BUSINESS ADDRESS: P. O. Box 530, Utica, NY PHONE: (315) UNDERWRITING LIMITATION b/: $3,708,000. SURETY LICENSES c,f/: CT, DE, DC, GA, IL, IN, KS, MD, MA, MI, NJ, NY, NC, OH, PA, RI, TN, TX, VA, WI. INCORPORATED IN: Ohio. RLI Indemnity Company (NAIC #28860) BUSINESS ADDRESS: 9025 N. Lindbergh Drive, Peoria, IL PHONE: (309) UNDERWRITING LIMITATION b/: $3,845,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. RLI Insurance Company (NAIC #13056) BUSINESS ADDRESS: 9025 N. Lindbergh Drive, Peoria, IL PHONE: (309) UNDERWRITING LIMITATION b/: $63,960,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. See footnotes and notes at the end of this Circular. Roche Surety and Casualty Company, Inc. (NAIC #42706) BUSINESS ADDRESS: 1910 Orient Road, Tampa, FL PHONE: (813) UNDERWRITING LIMITATION b/: $655,000. SURETY LICENSES c,f/: AK, AZ, AR, CT, DE, FL, GA, ID, IN, IA, KS, LA, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, ND, OH, OK, PA, SC, SD, TN, TX, UT, VT, VA, WA. INCORPORATED IN: Florida. Rockwood Casualty Insurance Company (NAIC #35505) BUSINESS ADDRESS: 654 Main Street, Rockwood, PA PHONE: (814) UNDERWRITING LIMITATION b/: $9,005,000. SURETY LICENSES c,f/: AK, AZ, AR, CO, GA, ID, IL, IN, IA, KS, KY, LA, MD, MN, MS, MO, MT, NV, NM, NC, OH, OK, OR, PA, SC, SD, TX, UT, VA, WV. INCORPORATED IN: Pennsylvania. SAFECO Insurance Company of America (NAIC #24740) BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $71,266,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Washington. Safety National Casualty Corporation (NAIC #15105) BUSINESS ADDRESS: 1832 Schuetz Road, St. Louis, MO PHONE: (314) UNDERWRITING LIMITATION b/: $53,091,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 67

68 NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Missouri. Sagamore Insurance Company (NAIC #40460) BUSINESS ADDRESS: PO Box 7099, Indianapolis, IN PHONE: (317) x-356. UNDERWRITING LIMITATION b/: $10,929,000. SURETY LICENSES c,f/: AL, AK, AZ, CO, CT, DE, GA, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MN, MS, MO, MT, NE, NM, NY, NC, OH, OR, PA, RI, SC, SD, TN, TX, UT, VT, WA, WV, WI, WY. INCORPORATED IN: Indiana. SECURA INSURANCE, A Mutual Company (NAIC #22543) BUSINESS ADDRESS: P.O. Box 819, Appleton, WI PHONE: (920) UNDERWRITING LIMITATION b/: $20,621,000. SURETY LICENSES c,f/: AZ, AR, CO, IL, IN, IA, KS, MI, MN, MO, ND, PA, SD, WA, WI. INCORPORATED IN: Wisconsin. See footnotes and notes at the end of this Circular. Selective Insurance Company of America (NAIC #12572) BUSINESS ADDRESS: 40 WANTAGE AVENUE, BRANCHVILLE, NJ PHONE: (973) UNDERWRITING LIMITATION b/: $45,168,000. SURETY LICENSES c,f/: AL, AK, AR, CT, DE, DC, GA, IL, IN, IA, KS, KY, MD, MA, MI, MN, MS, MO, MT, NE, NJ, NY, NC, ND, OH, OR, PA, RI, SC, SD, TN, TX, VA, WA, WV, WI, WY. INCORPORATED IN: New Jersey. Seneca Insurance Company, Inc. (NAIC #10936) BUSINESS ADDRESS: 160 Water Street, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $14,576,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. Sentry Insurance A Mutual Company (NAIC #24988) BUSINESS ADDRESS: 1800 NORTH POINT DRIVE, STEVENS POINT, WI PHONE: (715) UNDERWRITING LIMITATION b/: $258,226,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. Sentry Select Insurance Company (NAIC #21180) BUSINESS ADDRESS: 1800 NORTH POINT DRIVE, STEVENS POINT, WI PHONE: (715) UNDERWRITING LIMITATION b/: $22,456,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Wisconsin. SERVICE INSURANCE COMPANY (NAIC #36560) BUSINESS ADDRESS: P.O. Box 9729, Bradenton, FL PHONE: (800) UNDERWRITING LIMITATION b/: $1,437,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MI, MS, MO, MT, NE, NV, NM, NC, ND, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WY. INCORPORATED IN: Florida. SERVICE INSURANCE COMPANY INC. (THE) (NAIC #28240) BUSINESS ADDRESS: 80 Main Street, West Orange, NJ PHONE: (973) UNDERWRITING LIMITATION b/: $390,000. SURETY LICENSES c,f/: CT, DE, NJ, NY, PA. INCORPORATED IN: New Jersey. See footnotes and notes at the end of this Circular. SOUTHWEST MARINE AND GENERAL INSURANCE COMPANY (NAIC #12294) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 68

69 BUSINESS ADDRESS: 919 Third Avenue, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $2,641,000. SURETY LICENSES c,f/: AL, AZ, DC, HI, ID, IN, KY, LA, MD, MI, MS, MO, MT, NE, NV, ND, OH, OK, PA, SC, SD, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: Arizona. St. Paul Fire and Marine Insurance Company (NAIC #24767) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $406,674,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Minnesota. ST. PAUL GUARDIAN INSURANCE COMPANY (NAIC #24775) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $2,627,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Minnesota. St. Paul Mercury Insurance Company (NAIC #24791) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $6,366,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Minnesota. Standard Fire Insurance Company (The) (NAIC #19070) BUSINESS ADDRESS: ONE TOWER SQUARE, HARTFORD, CT PHONE: (860) UNDERWRITING LIMITATION b/: $130,728,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Connecticut. Star Insurance Company (NAIC #18023) BUSINESS ADDRESS: American Drive, Southfield, MI PHONE: (248) UNDERWRITING LIMITATION b/: $19,989,000. SURETY LICENSES c,f/: AL, AK, AS, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Michigan. See footnotes and notes at the end of this Circular. StarNet Insurance Company (The) (NAIC #40045) BUSINESS ADDRESS: 475 Steamboat Road, Greenwich, CT PHONE: (203) UNDERWRITING LIMITATION b/: $10,963,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MI, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Delaware. State Auto Property and Casualty Insurance Company (NAIC #25127) BUSINESS ADDRESS: 518 EAST BROAD STREET, COLUMBUS, OH PHONE: (614) UNDERWRITING LIMITATION b/: $48,443,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, CT, DC, FL, GA, IL, IN, IA, KS, KY, MD, MI, MN, MS, MO, MT, NE, NC, ND, OH, OK, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. INCORPORATED IN: Iowa. State Automobile Mutual Insurance Company (NAIC #25135) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 69

70 BUSINESS ADDRESS: 518 EAST BROAD STREET, COLUMBUS, OH PHONE: (614) UNDERWRITING LIMITATION b/: $98,962,000. SURETY LICENSES c,f/: AL, AZ, AR, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, MD, MI, MN, MS, MO, MT, NE, NV, NM, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. State Farm Fire and Casualty Company (NAIC #25143) BUSINESS ADDRESS: ONE STATE FARM PLAZA, BLOOMINGTON, IL PHONE: (309) UNDERWRITING LIMITATION b/: $818,465,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Illinois. Stonebridge Casualty Insurance Company (NAIC #10952) BUSINESS ADDRESS: 4333 Edgewood Road NE, Cedar Rapids, IA PHONE: (319) UNDERWRITING LIMITATION b/: $12,792,000. SURETY LICENSES c,f/: AL, AZ, CO, DC, GA, HI, ID, IL, IN, IA, KY, ME, MD, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SD, TX, UT, VT, VA, WA, WV, WI. INCORPORATED IN: Ohio. Suretec Insurance Company (NAIC #10916) BUSINESS ADDRESS: 952 Echo Lane, Suite 450, Houston, TX PHONE: (713) UNDERWRITING LIMITATION b/: $5,853,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MI, MS, MO, MT, NE, NV, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WY. INCORPORATED IN: Texas. See footnotes and notes at the end of this Circular. SURETY BONDING COMPANY OF AMERICA (NAIC #24047) BUSINESS ADDRESS: P.O. Box 5111, Sioux Falls, SD PHONE: (605) UNDERWRITING LIMITATION b/: $744,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, DE, DC, GA, ID, IL, IN, KS, MN, MO, MT, NE, NV, NM, NY, ND, OK, OR, SC, SD, TN, TX, UT, WV, WY. INCORPORATED IN: South Dakota. Swiss Reinsurance America Corporation (NAIC #25364) BUSINESS ADDRESS: 175 KING STREET, ARMONK, NY PHONE: (914) UNDERWRITING LIMITATION b/: $388,007,000. SURETY LICENSES c,f/: AL, AK, AZ, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WI. INCORPORATED IN: New York. TEXAS PACIFIC INDEMNITY COMPANY (NAIC #20389) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (214) UNDERWRITING LIMITATION b/: $472,000. SURETY LICENSES c,f/: AR, TX. INCORPORATED IN: Texas. TRANSATLANTIC REINSURANCE COMPANY (NAIC #19453) BUSINESS ADDRESS: 80 PINE STREET, NEW YORK, NY PHONE: (212) UNDERWRITING LIMITATION b/: $353,415,000. SURETY LICENSES c,f/: AK, AZ, AR, CA, CO, DE, DC, GA, ID, IL, IN, IA, KS, KY, LA, MI, MN, MS, NE, NV, NJ, NM, NY, OH, OK, PA, SD, UT, WA, WI. INCORPORATED IN: New York. Travelers Casualty and Surety Company (NAIC #19038) BUSINESS ADDRESS: ONE TOWER SQUARE, HARTFORD, CT PHONE: (860) UNDERWRITING LIMITATION b/: $321,937,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Connecticut. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 70

71 Travelers Casualty and Surety Company of America (NAIC #31194) BUSINESS ADDRESS: ONE TOWER SQUARE, HARTFORD, CT PHONE: (860) UNDERWRITING LIMITATION b/: $173,498,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Connecticut. See footnotes and notes at the end of this Circular. Travelers Casualty Insurance Company of America (NAIC #19046) BUSINESS ADDRESS: One Tower Square, Hartford, CT PHONE: (860) UNDERWRITING LIMITATION b/: $49,963,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Connecticut. Travelers Indemnity Company (The) (NAIC #25658) BUSINESS ADDRESS: ONE TOWER SQUARE, HARTFORD, CT PHONE: (860) UNDERWRITING LIMITATION b/: $796,224,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Connecticut. Trinity Universal Insurance Company (NAIC #19887) BUSINESS ADDRESS: Gran Bay Parkway West, Jacksonville, FL PHONE: (904) UNDERWRITING LIMITATION b/: $82,892,000. SURETY LICENSES c,f/: AL, AZ, AR, CA, CO, GA, ID, IL, IN, IA, KS, KY, LA, MI, MS, MO, MT, NE, NM, OH, OK, OR, TN, TX, UT, WA, WI, WY. INCORPORATED IN: Texas. U.S. Specialty Insurance Company (NAIC #29599) BUSINESS ADDRESS: NORTHWEST FREEWAY, HOUSTON, TX PHONE: (713) UNDERWRITING LIMITATION b/: $30,181,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Texas. ULLICO Casualty Company (NAIC #37893) BUSINESS ADDRESS: 1625 Eye St., NW., Washington, DC PHONE: (202) UNDERWRITING LIMITATION b/: $8,297,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Delaware. UNITED CASUALTY AND SURETY INSURANCE COMPANY (NAIC #36226) BUSINESS ADDRESS: 170 Milk Street, Boston, MA PHONE: (617) x-109. UNDERWRITING LIMITATION b/: $390,000. SURETY LICENSES c,f/: CT, DC, FL, MD, MA, NH, NJ, NY, ND, PA. INCORPORATED IN: Massachusetts. See footnotes and notes at the end of this Circular. United Fire & Casualty Company (NAIC #13021) BUSINESS ADDRESS: P. O. BOX 73909, CEDAR RAPIDS, IA PHONE: (319) UNDERWRITING LIMITATION b/: $53,846,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MO, MT, NE, NV, NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Iowa. UNITED FIRE & INDEMNITY COMPANY (NAIC #19496) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 71

72 BUSINESS ADDRESS: P.O. BOX 73909, CEDAR RAPIDS, IA PHONE: (319) UNDERWRITING LIMITATION b/: $1,460,000. SURETY LICENSES c,f/: AL, CO, IN, KY, LA, MS, MO, NM, TX. INCORPORATED IN: Texas. United States Fidelity and Guaranty Company (NAIC #25887) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $206,589,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Maryland. United States Fire Insurance Company (NAIC #21113) BUSINESS ADDRESS: 305 Madison Avenue, Morristown, NJ PHONE: (973) UNDERWRITING LIMITATION b/: $52,055,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Delaware. United States Surety Company (NAIC #10656) BUSINESS ADDRESS: P. O. Box 5605, Timonium, MD PHONE: (410) UNDERWRITING LIMITATION b/: $3,743,000. SURETY LICENSES c,f/: CT, DE, DC, FL, GA, ME, MD, MA, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV. INCORPORATED IN: Maryland. UNITED SURETY AND INDEMNITY COMPANY (NAIC #44423) BUSINESS ADDRESS: P.O. BOX 2111, SAN JUAN, PR PHONE: (787) UNDERWRITING LIMITATION b/: $5,088,000. SURETY LICENSES c,f/: PR. INCORPORATED IN: Puerto Rico. See footnotes and notes at the end of this Circular. UNIVERSAL INSURANCE COMPANY (NAIC #31704) BUSINESS ADDRESS: GPO BOX 71338, SAN JUAN, PR PHONE: (787) UNDERWRITING LIMITATION b/: $21,359,000. SURETY LICENSES c,f/: PR. INCORPORATED IN: Puerto Rico. Universal Surety Company (NAIC #25933) BUSINESS ADDRESS: P.O.Box 80468, Lincoln, NE PHONE: (402) UNDERWRITING LIMITATION b/: $8,229,000. SURETY LICENSES c,f/: AZ, AR, CO, ID, IL, IA, KS, KY, MI, MN, MO, MT, NE, NM, ND, OH, OK, OR, SD, UT, WA, WI, WY. INCORPORATED IN: Nebraska. UNIVERSAL UNDERWRITERS INSURANCE COMPANY (NAIC #41181) BUSINESS ADDRESS: 1400 AMERICAN LANE, TOWER I, 19TH FLOOR, SCHAUMBURG, IL PHONE: (847) UNDERWRITING LIMITATION b/: $34,877,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Kansas. Utica Mutual Insurance Company (NAIC #25976) BUSINESS ADDRESS: POST OFFICE BOX 530, UTICA, NY PHONE: (315) UNDERWRITING LIMITATION b/: $68,897,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 72

73 VAN TOL SURETY COMPANY, INCORPORATED (NAIC #30279) BUSINESS ADDRESS: 520 6th Street, Brookings, SD PHONE: (605) UNDERWRITING LIMITATION b/: $423,000. SURETY LICENSES c,f/: SD. INCORPORATED IN: South Dakota. VICTORE INSURANCE COMPANY (NAIC #28517) BUSINESS ADDRESS: 909 S. Meridian Ave., Suite 700, Oklahoma City, OK PHONE: (405) UNDERWRITING LIMITATION b/: $351,000. SURETY LICENSES c,f/: OK, TX. INCORPORATED IN: Oklahoma. See footnotes and notes at the end of this Circular. Vigilant Insurance Company (NAIC #20397) BUSINESS ADDRESS: 15 Mountain View Road, Warren, NJ PHONE: (212) UNDERWRITING LIMITATION b/: $15,263,000. SURETY LICENSES c,f/: AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: New York. Washington International Insurance Company (NAIC #32778) BUSINESS ADDRESS: 1200 ARLINGTON HEIGHTS ROAD, SUITE 400, ITASCA, IL PHONE: (603) UNDERWRITING LIMITATION b/: $6,078,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New Hampshire. West American Insurance Company (NAIC #44393) BUSINESS ADDRESS: 175 Berkeley Street, Boston, MA PHONE: (513) UNDERWRITING LIMITATION b/: $20,703,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY. INCORPORATED IN: Indiana. WEST BEND MUTUAL INSURANCE COMPANY (NAIC #15350) BUSINESS ADDRESS: 1900 South 18th Avenue, West Bend, WI PHONE: (262) x UNDERWRITING LIMITATION b/: $39,717,000. SURETY LICENSES c,f/: IL, IN, IA, KY, MI, MN, MO, OH, WI. INCORPORATED IN: Wisconsin. Westchester Fire Insurance Company (NAIC #21121) BUSINESS ADDRESS: 436 WALNUT STREET, P.O. BOX 1000, Philadelphia, PA PHONE: (215) UNDERWRITING LIMITATION b/: $75,953,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: New York. Western Insurance Company (NAIC #10008) BUSINESS ADDRESS: 675 West Moana Lane, Suite 200, Reno, NV PHONE: (775) UNDERWRITING LIMITATION b/: $1,888,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, HI, ID, IL, IN, IA, KS, LA, ME, MI, MN, MS, MO, MT, NE, NV, NM, OH, OK, OR, PA, TX, UT, VT, VA, WA, WI, WY. INCORPORATED IN: Nevada. See footnotes and notes at the end of this Circular. Western Surety Company (NAIC #13188) BUSINESS ADDRESS: P.O. Box 5077, Sioux Falls, SD PHONE: (605) UNDERWRITING LIMITATION b/: $54,720,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: South Dakota. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 73

74 Westfield Insurance Company (NAIC #24112) BUSINESS ADDRESS: P. O. Box 5001, Westfield Center, OH PHONE: (330) UNDERWRITING LIMITATION b/: $58,607,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: Ohio. Westfield National Insurance Company (NAIC #24120) BUSINESS ADDRESS: P. O. Box 5001, Westfield Center, OH PHONE: (330) UNDERWRITING LIMITATION b/: $15,456,000. SURETY LICENSES c,f/: AZ, CA, FL, GA, IL, IN, IA, KY, MI, MN, ND, OH, PA, SD, TN, TX, WV, WI. INCORPORATED IN: Ohio. Westport Insurance Corporation (NAIC #39845) BUSINESS ADDRESS: 5200 Metcalf Ave. OPN 232, OVERLAND PARK, KS PHONE: (913) UNDERWRITING LIMITATION b/: $181,127,000. SURETY LICENSES c,f/: AL, AK, AS, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Missouri. WHITE MOUNTAINS REINSURANCE COMPANY OF AMERICA (NAIC #38776) 3 BUSINESS ADDRESS: ONE LIBERTY PLAZA - 19TH FLOOR, NEW YORK, NY PHONE: (212) UNDERWRITING LIMITATION b/: $70,877,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CO, DC, GA, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MS, MT, NE, NH, NM, NY, NC, ND, OH, OK, OR, PA, SC, TX, UT, VA, WA, WI. INCORPORATED IN: New York. XL Reinsurance America Inc. (NAIC #20583) BUSINESS ADDRESS: Seaview House, 70 Seaview Avenue, Stamford, CT PHONE: (203) UNDERWRITING LIMITATION b/: $169,285,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY. INCORPORATED IN: New York. See footnotes and notes at the end of this Circular. XL Specialty Insurance Company (NAIC #37885) BUSINESS ADDRESS: Seaview House, 70 Seaview Avenue, Stamford, CT PHONE: (203) UNDERWRITING LIMITATION b/: $18,175,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: Delaware. Zurich American Insurance Company (NAIC #16535) BUSINESS ADDRESS: 1400 AMERICAN LANE, TOWER I, 19TH FLOOR, SCHAUMBURG, IL PHONE: (847) UNDERWRITING LIMITATION b/: $555,614,000. SURETY LICENSES c,f/: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MP, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY. INCORPORATED IN: New York. COMPANIES HOLDING CERTIFICATES OF AUTHORITY AS ACCEPTABLE REINSURING COMPANIES UNDER SECTION 223.3(b) OF TREASURY CIRCULAR NO [See Note (e)] Odyssey America Reinsurance Corporation (NAIC #23680) BUSINESS ADDRESS: 300 FIRST STAMFORD PLACE, STAMFORD, CT PHONE: (203) UNDERWRITING LIMITATION b/: $231,580,000. SURETY LICENSES c,f/:. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 74

75 Phoenix Insurance Company (The) (NAIC #25623) BUSINESS ADDRESS: ONE TOWER SQUARE, HARTFORD, CT PHONE: (860) UNDERWRITING LIMITATION b/: $117,019,000. SURETY LICENSES c,f/:. PLATINUM UNDERWRITERS REINSURANCE, INC. (NAIC #10357) BUSINESS ADDRESS: 225 Liberty Street, Suite 2300, New York, NY PHONE: (212) UNDERWRITING LIMITATION b/: $57,407,000. SURETY LICENSES c,f/:. SAFECO Insurance Company of Illinois (NAIC #39012) BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $15,960,000. SURETY LICENSES c,f/:. See footnotes and notes at the end of this Circular. SAFECO National Insurance Company (NAIC #24759) BUSINESS ADDRESS: 1001 FOURTH AVE, SAFECO PLAZA, SEATTLE, WA PHONE: (206) UNDERWRITING LIMITATION b/: $5,717,000. SURETY LICENSES c,f/:. ST. PAUL PROTECTIVE INSURANCE COMPANY (NAIC #19224) BUSINESS ADDRESS: 385 Washington Street, St. Paul, MN PHONE: (651) UNDERWRITING LIMITATION b/: $23,388,000. SURETY LICENSES c,f/:. FOOTNOTES 1. AMERICAN CONTRACTORS INDEMNITY COMPANY (NAIC# 10216) is required by state law to conduct business in the state of Texas as TEXAS BONDING COMPANY. However, business is conducted in all other covered states as AMERICAN CONTRACTORS INDEMNITY COMPANY. 2. DaimlerChrysler Insurance Company (NAIC# 10499) formally changed its name to Chrysler Insurance Company effective January 1, FOLKSAMERICA INSURANCE COMPANY (NAIC# 38776) formally changed its name to WHITE MOUNTAINS REINSURANCE COMPANY OF AMERICA effective July 8, International Fidelity Insurance Company s (NAIC# 11592) name is very similar to another company that is NOT certified by this Department. Please ensure that the name of the Company and the state of incorporation are exactly as they appear in this Circular. Do not hesitate to contact the Company to verify the authenticity of a bond. 5. MID-CONTINENT CASUALTY COMPANY (NAIC# 23418) redomesticated from the state of Oklahoma to the state of Ohio effective August 25, Oklahoma Surety Company (NAIC# 23426) redomesticated from the state of Oklahoma to the state of Ohio effective August 25, Notes (a) All Certificates of Authority expire June 30, and are renewable July 1, annually. Companies holding Certificates of Authority as acceptable sureties on Federal bonds are also acceptable as reinsuring companies. (b) The Underwriting Limitations published herein are on a per bond basis. Treasury requirements See footnotes and notes at the end of this Circular. do not limit the penal sum (face amount) of bonds which surety companies may provide. However, when the penal sum exceeds a company's Underwriting Limitation, the excess must be protected by co-insurance, reinsurance, or other methods in accordance with 31 CFR Section , Section Treasury refers to a bond of this type as an Excess Risk. When Excess Risks on bonds in favor of the United States are protected by reinsurance, such reinsurance is to be effected by use of a Federal reinsurance form to be filed with the bond or within 45 days thereafter. In protecting such excess risks, the underwriting limitation in force on the day in which the bond was provided will govern absolutely. For further assistance, contact the Surety Bond The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 75

76 Branch at (202) (c) A surety company must be licensed in the State or other area in which it provides a bond, but need not be licensed in the State or other area in which the principal resides or where the contract is to be performed [28 Op. Atty. Gen. 127, Dec. 24, 1909; 31 CFR Section (b)]. The term "other area" includes the District of Columbia, American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the Virgin Islands. License information in this Circular is provided to the Treasury Department by the companies themselves. For updated license information, you may contact the company directly or the applicable State Insurance Department. Refer to the list of state insurance departments at the end of this publication. For further assistance, contact the Surety Bond Branch at (202) (d) FEDERAL PROCESS AGENTS: Treasury Approved surety companies are required to appoint Federal process agents in accord with 31 U.S.C and 31 CFR 224. (e) Companies holding Certificates of Authority as acceptable reinsuring companies are acceptable only as reinsuring companies on Federal bonds and may not directly write Federal bonds. (f) Some companies may be Approved surplus lines carriers in various states. Such approval may indicate that the company is authorized to write surety in a particular state, even though the company is not licensed in the state. Questions related to this may be directed to the appropriate State Insurance Department. Refer to the list of state insurance departments at the end of this publication. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 76

77 Section 2 Sample Municipal Construction Bond Regulations The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 77

78 Willington Subdivision Regulations Chapter 5 - Insurance, Bonds, Releases, and Agreements CHAPTER V _ INSURANCE, BOND REQUIREMENTS, CERTIFICATE OF USE, BOND RELEASE, AND AGREEMENT FOR INSTALLATION OF IMPROVEMENTS SECTION 1. INSURANCE a) The subdivider shall file with the Commission, on a form provided by the Town, a general liability insurance policy. This policy shall be of the same term as the Performance Bond and shall be extended in conformance with any extension of the Performance Bond. b) The policy shall insure the Town of Willington and its agents, and the subdivider and shall cover all his operations in the development involving existence and maintenance of property and buildings and contracting operations of every nature including all public Improvements. Said policy shall have the following limits: Property Damage (including automobile) Each Accident: Not less than $250,000 Bodily Injury (including automobile) Each Person : Not less than $1,000,000 Each Accident: Not less than $3,000,000 SECTION 2. PERFORMANCE BOND a) A Performance Bond shall be posted by the subdivider prior to the commencement of construction of any Improvement or work on any lot to insure the completion of required Improvements and utilities in the event the subdivider shall fail to install same within two (2) years from the date of the Bond. The term of the Performance Bond may be extended by the Commission upon approval of a petition from the developer to the Commission requesting an extension subject to agreement of such extension by the Surety. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 78

79 b) In computing the amount of the Bond, the Commission shall include the construction cost of the following items: 1) The construction cost of all required Improvements, including storm drainage system, erosion and sedimentation control measures, roads and pavements, sidewalks and curbs, trees, grading setting of monuments, and any other requirements made as a condition for subdivision approval or depicted on the endorsed Final Subdivision Plan, Plan and Profile, Erosion and Sedimentation Control Plan, or any other plan as approved by the Commission. 2) Estimated costs shall be those that would allow for the Town advertising and awarding a contract for construction of the Improvements. 3) Costs shall be projected to a point at the end of the Performance Bond term. Any extension of the term of the Performance Bond may result in an adjustment as to the Bond total. 4) The total estimated cost of the Performance Bond shall also include a 15% addition to cover contingencies and engineering. 5) Where a subdivision is to be developed in phases, the subdivider may petition the Commission in writing for permission to post a Performance Bond covering the costs itemized in paragraphs (b) 1~through 4 above, related to those Improvements and utilities located within or required to serve one or more phases rather than for the entire development. Similar permission shall be obtained by the subdivider prior to commencing development of any or all additional phases. Where the subdivider bonds in phases as authorized in this paragraph, no Improvement, as that term is defined in these Regulations, shall be commenced in any phase for which no bond has been posted. c) As used in these Regulations, the term "Performance Bond" shall refer to one of the following methods of assuring completion of Subdivision Improvements: 1) Cash in the form of a certified check; or a passbook, assigned to the Town by assignment forms prescribed by the Commission's legal counsel. The issuing bank ("Surety") shall be one maintaining offices in either Windham or Tolland Counties; 2) A Letter of Credit in favor of the Town in the form prescribed by the Commission's legal counsel. Such Letter of Credit shall be issued only by a bank or comparable lending The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 79

80 institution maintaining officer in the State of Connecticut. The issuing bank ("Surety") shall be one maintaining offices in either Windham or Tolland Counties; 3) A restrictive covenant, in a form prescribed by the Commission's legal counsel, to be filed on the land records of the Town of Willington, prohibiting the sale of any subdivision lot(s) until such time as all Improvements are completed in accordance with these Regulations, or until the incomplete portions of such Improvements are bonded by one of the methods in the preceding two (2) paragraphs. The above_referenced forms shall be as provided by the Town and shall be the only ones acceptable to the Commission. The amount of the Bond shall be the sum which the Commission shall require. The completion date of all required Improvements shall be as required by the Commission, but, in no event, longer than the period set forth in Chapter 126 of the Connecticut General Statutes. d) For all Performance bond documents: If the subdivision applicant is a corporation, then the corporate seal must be shown in addition to the seal of the lending institution issuing the passbook assignment or Letter of Credit, and a corporate resolution must be provided indicating that the corporate officer executing the bond documents has authority to do so. If the subdivision applicant is a partner_ ship, then a partnership resolution must be provided indicating that the partner executing the bond documents has authority to do so. Any corporation shall provide a Certificate of Good Standing from the Connecticut Secretary of the State; any limited partnership shall provide a Certificate of Legal Existence from the Connecticut Secretary of the State; out_of_state applicants shall present evidence form the Secretary of the State that they are authorized to do business in Connecticut. e) If at any time, the bond required by this Section shall not be in effect for incomplete or unaccepted Improvements, the Commission may file a caveat on the Land Records warning potential purchasers of such fact; or may void the subdivision in accordance with the provisions of Chapter XI of these Regulations. SECTION 3. CERTIFICATE OF ZONING COMPLIANCE Before any Certificate of Zoning Compliance (Zoning Permit) is issued for the construction of any building in such subdivision on a lot which fronts on a subdivision road which has not been accepted by the Town as a public road, the subdivider shall complete such road, in accordance with the specifications up to the farther side line of such lot, to a stage in construction at which only final surfacing of the road remains to be done before completion of the road; the foregoing The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 80

81 shall not apply to street trees, sidewalks, or other types of road_related Improvements not required for vehicular travel, but shall apply to the installation of street name signs to facilitate the provision of emergency services. The balance of the work on such road, and all other public Improvements, shall be bonded in accordance with the provisions of this Chapter V. In addition, water and effluent disposal, be it by individual on_site systems or community systems, shall be operational and accepted by the appropriate Town or State agencies prior to the issuance of a Certificate of Zoning Compliance allowing the occupancy of the dwelling on any lot. SECTION 4. BOND RELEASE a) Prior to the release of the Performance Bond the subdivider shall present a Maintenance Bond equal to twenty (20%) percent of his Performance Bond. Such Bond shall be for the period of one (1) year and shall guarantee the Improvements installed against defects in materials or workmanship, or damage caused to the Improvements by any construction activity in the subdivision. The said one_year period shall commence upon the effective date of the acceptance of any road or other public Improvements by that agency having authority for such acceptance. b) Application for the release of any Bond upon completion of all required Improvements shall include the submission of scale as_built drawings which shall include all changes in the plans as authorized by the Commission or the Engineer during the course of construction. The as_built drawings shall be signed and sealed by both a Connecticut Registered Professional Engineer and a Land Surveyor licensed in the State of Connecticut. c) Upon submission of a written report from the Engineer that all or a certain specified stage in the construction of Improvements has been satisfactorily completed, the applicant may request that the Commission reduce any outstanding bond to reflect the cost of construction of the remaining Improvements. The Commission shall grant no more than three (3) such reductions prior to the final release of bonds, and the Commission may refuse such reductions if it finds that the construction of any Improvements in violation of any provision of these Regulations or the plans or conditions for any subdivision approved hereunder. SECTION 5. AGREEMENT FOR INSTALLATION OF IMPROVEMENTS For any subdivision involving the installation of public Improvements, the subdivider shall, prior to the endorsement of the Final Plans, enter into a written agreement with the Town to perform such Improvements, which agreement shall be in the form contained in the Appendices to these Regulations. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 81

82 Avon Charter, Ordinances and Selected Regulations ASSURANCE FOR COMPLETION AND MAINTENANCE OF IMPROVEMENTS Bonds. In lieu of requiring the completion of public improvements previous to the final approval of a subdivision plan, the Commission may accept a bond in an amount and with surety or other security and conditions satisfactory to it Definition. For the purposes of this section, a bond shall mean one of the following: (1) A surety bond; (2) A bond secured by a passbook savings account; or (3) A bond secured by an irrevocable letter of credit. Such bonds shall be subject to the approval of the Commission [Bonding.] The bond shall secure to the Town the actual construction and installation of such improvements and utilities within one year from the day of approval of the subdivision plan. The Commission may extend the completion date for public improvements for additional periods. As a condition for such extension, the Commission may require the increase in the amount of the bond Form. Bond shall be duly executed on forms provided or approved by the Town, with proper reference to all maps and plans showing the streets, drainage and other improvements covered by the bond. Forms and other data shall be provided as follows: Surety bonds shall be accepted only from those companies licensed to do business in the State of Connecticut. They shall be accompanied by the power of attorney of the person executing the bond for the company Bonds secured by a passbook savings account shall be accompanied by: i. The savings account passbook; ii. A withdrawal slip in the amount of the bond, properly endorsed and made payable to the Town; and iii. A letter from the bank acknowledging that the account has been assigned to the Town for the period established for the construction or installation of public improvements, plus six months. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 82

83 Bonds secured by irrevocable letter of credit shall be provided by a bank or other similar reputable institution or individual, subject to the approval of the Commission. The letter of credit shall be in such form and accompanied by such documents as may be prescribed by the Commission Failure to complete improvements. Where a bond has been posted and required improvements have not been installed within the terms of such bond, the Town may thereupon declare the bond to be in default and require that all the improvements be installed regardless of the extent of the building development at the time of the bond is declared to be in default Partial release. When and if the Town Engineer determines that a substantial portion of the public improvements called for in the final plan approved by the Commission has been completed, he may recommend one or more partial releases of a portion of the surety, the balance to be sufficient to guarantee completion of the public improvements. Such partial release shall be authorized by the Town Manager's office upon recommendation of the Town Engineer. Releases shall be granted in amounts in excess of $1, In no event shall a bond be released below 10% of the actual cost of improvements Final release. Bonds will not be released until the following conditions have been met: i. The Town Engineer has submitted a certificate stating that all required improvements have been satisfactorily completed; ii. The applicant's engineer or surveyor has certified to the Town Engineer, through submission of detailed "as-built" plans, that the layout of the line and grade of all public improvements is in accordance with construction plans for the subdivision. "As-built" plans shall include a site development plan, a grading plan, and a construction plan as described in Section IV. Such plans shall show any modification or changes made during construction. In addition, the grading plan shall show location of all water main gates, curb stops, sewer lateral "Y's" and sewer laterals at property lines. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 83

84 iii. All public improvements called for in the final plan have been accepted by the Town. A maintenance bond, as described in Paragraph 3.02 [ ], shall be filed with the Town. iv. All documents required by the "Acquisition Agreement for a Public Right-of-Way" have been furnished [to] the Commission and all conditions and requirements of the Commission's approval of the subdivision application have been satisfied Maintenance of improvements. The applicant shall be required to maintain all improvements and provide for snow removal on streets and sidewalks, if required, until acceptance of said improvements by the Town Maintenance bond. The applicant shall be required to file a maintenance bond with the Town prior to dedication in an amount determined by the Town Engineer in order to assure the satisfactory condition of the required improvements, for a period of one year after the date of their acceptance by the Town. In no case shall the maintenance bond be less than 10% of the cost of improvements and shall be of such form as described in Section 3.01(1) of these regulations Completion of road improvements prior to issuance of a zoning permit or building permit. No zoning permit or building permit for any home to be constructed on an approved subdivision lot shall be issued until such time that, in the opinion of the Town Engineer, provision has been made for passage at all times for emergency vehicles. At the discretion of the Town Engineer, a cash bond in an amount to be determined by the Town Engineer may be required to guarantee these improvements. In an instance where a zoning permit or zoning permits have been issued and the Town Engineer determines that the roadway is not passable to emergency vehicles, the Zoning Enforcement Officer shall be authorized to cause such permit(s) to be immediately revoked and the Town Engineer shall be authorized to use the cash bond to make necessary repairs to the roadway Completion of improvements prior to issuance of Certificate of Zoning Compliance and Certificate of Occupancy. No Certificate of Zoning Compliance or Certificate of Occupancy for any home constructed on an approved subdivision lot will be issued until such time that the binder course of pavement is installed in accordance with the approved plan and inspected and approved by the Town Engineer. At the time the binder course of pavement is installed, all structures, including sewer The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 84

85 manholes and catch basin grates, must be set to the elevation of the binder course of pavement. Prior to installation of the wearing course of pavement, all structures shall be adjusted to the elevation of the final course of pavement. A note specifying these requirements shall be added to each sheet of the record plans. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 85

86 Berlin Code of Ordinances ARTICLE IV. REQUIRED IMPROVEMENTS AND AGREEMENTS 40:00. Improvements and performance bond. 40:01. Completion of improvements or posting of subdivision bond. Prior to the granting of final approval of a subdivision by the planning commission, the applicant shall complete to the satisfaction of the planning commission all improvements shown on the subdivision plan, site plan and/or grading plan and/or such improvements as are required by resolution by the planning commission. Said improvements shall include, but are not necessarily limited to, all streets, drains, public sanitary water and sewerage systems, public sidewalks, curbing, street and lot corner monuments, filling, excavation and grading, and construction or alteration of watercourses. In lieu of the construction of required improvements by the applicant prior to final subdivision approval, the planning commission may accept a suitable bond or other surety to secure to the town the satisfactory completion of the required improvements which remain uncompleted, said surety to be in form and content approved by the town corporation counsel and the planning commission, and in an amount approved by the planning commission. As a part of this surety, the planning commission may require that the applicant deposit with the treasurer of the Town of Berlin a sum of money not greater than ten percent of the total value of the proposed improvements, which funds may be drawn upon by the planning commission should the applicant fail, after 24 hours' written or verbal notice, or without notice in an emergency as determined by the then acting chairman of the planning commission, to certain required improvements or to perform other work, the completion of which in the opinion of the planning commission, or in the case of emergency, its chairman, is necessary for the safety, health, protection and/or convenience of the Town of Berlin, the public at large, and/or affected property owners. Should the commission be required to draw upon the funds deposited with the town treasurer, the applicant shall restore these funds to the original balance within 15 days of receipt of notice. Should the applicant fail to restore these funds, the planning commission may recover these funds by the actions specified in section 40:03 of these regulations. 40:011.Time of completion. The performance bond shall cover each subdivision section with a 24-month completion date considered for each, unless otherwise specified by the commission, to be measured from the date of approval. Progress reports, as requested by the bonding agency, may be estimated by the town engineer, based on the time limit prescribed. 40:02. Costs to be borne by the applicant. All required improvements shall be made by the applicant, at his expense, without reimbursement by the town or any division therein. 40:03. Failure to complete improvements. For subdivisions for which no performance bond has been posted, if the improvements are not completed within the period specified by the planning commission in the resolution approving the plat, said resolution shall be deemed to be void, and the owner will be so notified by said commission. In those cases where a performance bond has The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 86

87 been posted and required improvements have not been installed within the term of such performance bond, or should the subdivider fail to maintain steady and timely progress towards completion of the required improvements, if in its opinion public health, safety or convenience is jeopardized, the planning commission may thereupon declare said bond to be in default and make demand on surety for the completion of the project or for the payment of whatever sum is necessary to complete the project. 40:04. Release of bond. As work progresses the amount of the bond may be reduced by the planning commission upon the recommendation of the town engineer. Any request for a bond reduction must be submitted in writing to the town engineer at least five working days prior to the next following commission meeting. In no case shall the amount of the bond be reduced to less than 25 percent of the original bond or $5, whichever is greater, until the improvements have been accepted by the town and the warrantee deed dedicating the land to the Town of Berlin for highway purposes and/or other dedicated purposes has been placed on file with the town clerk. Where the original bond is less than $5,000.00, no portion of the performance bond shall be released until acceptance of the improvements by the town. 40:05. Issuance of certificate of occupancy. The road which provides access and frontage to a residential lot shall be completed or an asphalt binder road surface shall be installed leading up to and along the frontage of the subject lot in accordance with the standards of these regulations prior to the issuance of a certificate of occupancy. (Amend. of , 40:00; Amend. of , 40:05) 41:00. Inspection of improvements. 41:01. General inspection. The planning commission will provide for the inspection of required improvements during construction to assure their satisfactory completion. If the town engineer, or other authorized inspector, finds upon inspection that any of the required improvements have not been constructed in accordance with the town construction standards and specifications and the approved construction plans, the applicant shall be responsible for completing said improvements. Whenever the cost of improvements is covered by a performance bond, the bonding company shall be severally and jointly liable for completing said improvements according to specifications. 41:02. Inspection of stages of construction. In order to facilitate inspection of required improvements during construction, the applicant shall notify the town engineer 24 hours in advance before he proceeds with each of the following stages of construction. 41:021. Before backfilling of underground drainage facilities. 41:022. Before backfilling of water and sewer facilities to be accepted by the Town of Berlin. 41:023. Before laying gravel subbase. 41:024. Before laying base course. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 87

88 41:025. Before each paving course. 41:026. Before pouring concrete walks or curbs. 41:027. After completion of all improvements. 41:03. Certificates of satisfactory completion. The planning commission will not give final approval of required improvements, nor authorize release of performance bond, until the applicant's engineer has submitted a statement certifying the road and other required improvements have been constructed in accordance with the approved construction plan and profile. 41:04. Failure of the commission to make inspection. Failure of the commission to order or carry out inspection of required improvements during construction will not in any way relieve the applicant or the bonding company of their responsibilities to comply with these regulations. 41:05.Maintenance period. For a period of 18 months after acceptance of the improvements by the town, the subdivider shall be responsible for the repair or replacement of said improvements which have failed, settled or deteriorated due to improper construction or due to acts of the subdivider or his agents during or subsequent to construction. To insure compliance, the subdivider shall file with the commission, prior to acceptance of the improvements by the town, a maintenance bond, certified check or escrow agreement, approved as to form and sureties by the town attorney in the amount of ten percent of the improvement costs; however, the commission may require a greater amount to be retained as a maintenance bond, if deemed in the public interest by the commission. It shall be the subdivider's responsibility to insure that individual property owners or their agents, who may have purchased property within the subdivision, do not cause damage to the improvements during the maintenance period. If damage is caused it shall be the responsibility of the subdivider to make necessary repairs or to offer conclusive evidence that the damage was caused by others. (Amend. of , 41:00) 42:00. Utilities. Trenches, mains, etc., section 3:02, Town of Berlin Design and Construction Standards and Specifications applies. (Amend. of , 42:00) 43:00. Future status of roads, parks and easements. 43:01. Offers of conveyance. Approval of a final subdivision plat shall not constitute acceptance by the town of any street. However the filing of such final plat with the town clerk shall constitute an offer of dedication to the town for acceptance as a street of any land shown as a street, on said plan. Said offer of dedication shall be binding upon the owner of said land, his heirs, successors and assigns and may be altered or released only upon approval of the commission. The same shall hold true for dedication of land for easements, open space or other public use. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 88

89 43:02.Necessary submittals. Following completion of required improvements, the subdivider shall submit, at least five working days before the next scheduled meeting of the planning commission, the following for review by the town engineer and approval by the planning commission: 43:021. Deed description and conveyance maps for all offered or required streets, parks, open space and easements. 43:022. Properly completed waiver of mechanics' lien on a form approved by the corporation counsel. 43:023. Maintenance bond, if required. 43:024. As-built construction plans. 43:03.Acceptance by the public. After review and approval of the submittals required above, the planning commission shall request that the executive board [town council] authorize acceptance of the offered or required streets or other public areas by town meeting to be scheduled as the executive board [town council] may direct. (Amend. of , 43:00) 44:01. Authority-waiver of required improvements. The planning commission may waive, subject to appropriate conditions, the provisions of these regulations for any or all improvements as, in the judgment of the special circumstances of a particular plat, are inappropriate because of inadequacy or lack of connecting facilities, topography, or other features of the land being subdivided. No waiver shall be granted that will have a significant adverse effect on adjacent property or on public health and safety. Such adjustment will not have the effect of nullifying the intent and purpose of these regulations, the town master plan, or the official map of the town. In granting any adjustment, the planning commission shall attach such conditions as are, in its judgment, necessary to secure substantially the objectives of the standards or requirements so adjusted. (Amend. of , 44:01) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 89

90 Westbrook Code of Ordinances 2.11 Insurance, bond requirements: Certificate of use, bond release, and agreement for installation of improvements Insurance: (a) The subdivider shall file with the commission, on a form provided by the town, a general liability insurance policy. This policy shall be of the same term as the performance bond and shall be extended in conformance with any extension of the performance bond. (b) The policy shall insure the town and its agents, and the subdivider and shall cover all his operations in the development involving existence and maintenance of property and buildings and contracting operations of every nature including all public improvements. Said policy shall have the following limits: Property damage (including automobile) Each accident: Not less than $250,000 Aggregate: Not less than $750,000 Bodily injury (including automobile) Each person: Not less than $1,000,000 Each accident: Not less than $3,000, Performance bond. (a) A performance bond shall be posted by the subdivider prior to the commencement of construction of any improvement or work on any lot to insure the completion of required improvements and utilities in the event the subdivider shall fail to install the same within the term of such bond or any extension thereof. The term of the performance bond may be extended by the commission upon approval of a petition from the developer to the commission requesting an extension subject to agreement of such extension by the party issuing such bond. If the subdivider shall fail to complete all improvements in accordance with these regulations and the approved plans, and within the time limits set forth in these regulations, the commission may recommend that the town utilize the bond, and any accrued interest, to complete construction and for any attendant costs, such as costs of advertising for contracts, supervision and inspection of work, legal fees, and the like. (b) In computing the amount of the bond, the commission shall include the construction cost of the following items: (1) The construction cost of all required improvements, including storm drainage system, erosion and sedimentation control measures, roads and pavements, sidewalks and curbs, trees, grading, setting of monuments, and any other requirements made as a condition for subdivision approval or depicted on the endorsed final subdivision plan, plan and profile, erosion and sedimentation control plan, or any other plan as approved by the commission. The cost of erosion and sedimentation control measures shall be stated separately, and may be reduced by the amount of any cash bond required by the inland wetlands and watercourses commission at such time as such bond is posted. In the case of water mains, electric lines or other utilities to be installed by a public utility, a written statement from such utility that the work will be done within the period required for other improvements in such subdivision, and at no expense to the town, will be accepted in lieu of the requirements of this section. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 90

91 (2) Estimated costs shall be those that would allow for the town advertising and awarding a contract for construction of the improvements. (3) Costs shall be projected to a point at the end of the performance bond term. Any extension of the term of the performance bond may result in an adjustment as to the bond total. (4) The total estimated cost of the performance bond shall also include a fifteen (15) percent addition to cover contingencies and engineering. (5) Where a subdivision is to be developed in phases, the subdivider may petition the commission in writing for permission to post a performance bond covering the costs itemized in paragraphs (b)1) through 4) above, related to those improvements and utilities located within or required to serve one or more phases rather than for the entire development. Similar permission shall be obtained by the subdivider prior to commencing development of any or all additional phases. Where the subdivider bonds in phases as authorized in this paragraph, no improvement, as that term is defined in these regulations, shall be commenced in any phase for which no bond has been posted. (c) As used in these regulations, the term "performance bond" shall refer to one of the following methods of assuring completion of subdivision improvements: (1) Cash in the form of a certified check, or a passbook, assigned to the town by assignment forms prescribed by the commission's legal counsel. The issuing bank ("surety") shall be one maintaining offices in New Haven, New London, or Middlesex Counties. This shall be the only method of bonding permitted for erosion and sedimentation control measures; (2) A letter of credit in favor of the town in the form prescribed by the commission's legal counsel. Such letter of credit shall be issued only by a bank or comparable lending institution maintaining offices in the state. The issuing bank ("surety") shall be one maintaining offices in New Haven, New London, or Middlesex Counties; (3) A restrictive covenant, in a form prescribed by the commission's legal counsel, to be filed on the land records of the town, prohibiting the sale of any subdivision lot(s) until such time as all improvements are completed in accordance with these regulations, or until the incomplete portions of such improvements are bonded by one of the methods in the preceding two (2) paragraphs. See section 2.8. The above-referenced forms shall be as provided by the town and shall be the only ones acceptable to the commission. The amount ot the bond shall be the sum which the commission shall require. The completion date of all required improvements shall be the end of the term of the bond or any extension thereof, but, in no event, longer than the period set forth in chapter 126 of the General Statutes. (d) For all performance bond documents: If the subdivision applicant is a corporation, then the corporate seal must be shown in addition to the seal of the lending institution issuing the passbook assignment or letter of credit, and a corporate resolution must be provided indicating that the corporate officer executing the bond documents has authority to do so. If the subdivision applicant is a partnership, then a partnership resolution must be provided indicating that the partner executing the bond documents has authority to do so. Any corporation shall provide a certificate of good standing from the Connecticut secretary of the state; any limited partnership shall provide a certificate of legal existence from the Connecticut secretary of the state; out-ofstate applicants shall present evidence from the secretary of the state that they are authorized to do business in Connecticut. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 91

92 (e) If at any time, the bond required by this section shall not be in effect for incomplete or unaccepted improvements, the commission may file a caveat on the land records warning potential purchasers of such fact; or may void the subdivision in accordance with the provisions of section 1.7 of these regulations Certificate of zoning compliance: Before any zoning permit (certificate of zoning compliance) is issued for the construction of any building in such subdivision on a lot which fronts on a subdivision road which has not been accepted by the town as a public road, the subdivider shall complete such road, in accordance with the specifications 2.11 up to the farther side line of such lot, to a stage in construction at which only final surfacing of the road remains to be done before completion of the road; the foregoing shall not apply to street trees, sidewalks, or other types of road-related improvements not required for vehicular travel, but shall apply to the installation of street name signs to facilitate the provision of emergency services. The balance of the work on such road, and all other public improvements, shall be bonded in accordance with the provisions of this section In addition, water and effluent disposal, be it by individual on-site systems or community systems, shall be operational and accepted by the appropriate town or state agencies prior to the issuance of a certificate of zoning compliance allowing the occupancy of the dwelling on any lot Bond release: (a) Prior to the release of the performance bond the subdivider shall present a maintenance bond equal to twenty (20) percent of his performance bond. Such bond shall be for the period of one (1) year and shall guarantee the improvements installed against defects in materials or workmanship, or damage caused to the improvements by any construction activity in the subdivision. The said one-year period shall commence upon the effective date of the acceptance of any road or other public improvements by that agency having authority for such acceptance. (b) Application for the release of any bond upon completion of all required improvements shall include the submission of scale as-built drawings which shall include all changes in the plans as authorized by the commission or the engineer during the course of construction. The as-built drawings shall be signed and sealed by both a Connecticut registered professional engineer and a land surveyor licensed in the state. (c) Upon submission of a written report from the engineer that all or a certain specified stage in the construction of improvements has been satisfactorily completed, the applicant may request that the commission reduce any outstanding bond to reflect the cost of construction of the remaining improvements. The commission shall grant no more than three (3) such reductions prior to the final release of bonds, and the commission may refuse such reductions if it finds that the construction of any improvements are in violation of any provision of these regulations or the plans or conditions for any subdivision approved hereunder Agreement for installation of improvements: For any subdivision involving the installation of public improvements, the subdivider shall, prior to the endorsement of the final plans, enter into a written agreement with the town to perform such improvements, which agreement shall be in the form specified by the commission's legal counsel. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 92

93 Guarantee of maintenance of improved town roads: Improved streets which are accepted by the town shall be maintained in good repair by the applicant for a period of one year from the date of such acceptance. Prior to acceptance by the town, the applicant will furnish to the selectmen an acceptable surety bond (or cash or certified check) in the amount to be established by the selectmen, upon recommendation of the planning commission, sufficient to secure to the town of maintenance above specified Warranty of improved town roads: The applicant shall, when notified by the selectmen promptly and at his own expense, repair all defects, settlements and irregularities in the construction and operation of any improvements [an improved town road and its appurtenant structures, including drainage system pipes, mains or conduits, curbs, gutters, sidewalks, road surfaces, land turfing and bridges] which may arise during a period of one year after acceptance by the town Certificate of compliance. Before release of any bond, the applicant shall present a statement and a copy of the "as built" construction plans, each signed and sealed by a professional engineer licensed to practice in the state, which statement shall certify that the streets, ditches, watercourses, headwalls, storm drains, sanitary sewers, catch basins manholes, sidewalks, gutters, curbs, bridges, culverts and other structures and improvements have been installed in the location and at the elevation or grade shown on the construction plans. Any revisions of the approved construction plan must be approved and initialed by the selectmen or their agent. Such revision shall be incorporated on the "as built" construction plans. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 93

94 Durham Code of Ordinances ARTICLE II. ROAD CONSTRUCTION Sec Performance bond. (a) Upon approval of road plans by the board of selectmen, the developer or contractor shall file with the first selectman a performance bond as follows: (1) In the case of the construction of a road under contract to the town, the bond shall be in the full amount of the contract in order to secure to the town the satisfactory completion of the work. (2) In the case of the construction of a road or roads in a proposed subdivision the bond shall be in an amount as established by the board of selectmen as sufficient to secure to the town the actual installation of all proposed improvements and the satisfactory completion of the work. In this case, the planning and zoning commission shall not give final approval of any proposed plan of subdivision, nor shall the developer sell, or offer to sell, any land in the proposed subdivision until such bond has been filed and notification of acceptance given in writing by the first selectman. (b) All performance bonds shall be by surety companies licensed to do business in the state and shall be written in accordance with a form supplied by the town, which shall be satisfactory to town counsel as to form, sufficiency and manner of execution. In lieu of a performance bond, the developer or contractor may, at his option, deposit with the treasurer of the town cash, certified check, or savings account deposit, in the required amount. (Comp. Ords. 1983, pg. 73, , IV) Sec Petition and title certificate. After completed roads, or portions thereof, have passed all inspections as provided for in the road standards and specifications, the developer or contractor must petition the board of selectmen, on forms provided by the board, requesting the board to recommend acceptance of the road to a future special or regular town meeting. At the same time, the petitioner shall furnish the first selectman at the petitioner's expense a title certificate of any interest in property to be conveyed or granted to the town. After approval by the board of selectmen, the board shall schedule town meeting action within forty-five (45) days provided, however, that an acceptable maintenance bond shall have been delivered to the board of selectmen as required in section (Comp. Ords. 1983, pg. 73, , V) Sec Maintenance period and maintenance bond. (a) Prior to final acceptance of a constructed road by the town, the developer or contractor shall file with the board of selectmen an acceptable surety company bond (or cash, certified check, or savings account deposit) in an amount as established by the selectmen sufficient to secure to the town the full maintenance of the road, excluding snow removal service, for a period of one (1) year from the date of final acceptance. (b) Upon final acceptance, the maintenance bond shall become effective and the board of selectmen shall release the one hundred (100) percent performance bond required under section The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 94

95 (c) During the one-year maintenance period, the contractor or developer shall, when notified by the board of selectmen, promptly and at his own expense, repair all failures in the construction and operation of roads, drainage structures, appurtenances, bridges, and other public improvements as may occur during the one-year maintenance period due to faulty material or workmanship. He shall similarly repair all defects, settlements, and irregularities of the structures and appurtenances of drains, pipes, mains, conduits, curbs, gutters, sidewalks, road surfacing, land turfing or any other structures in the highway right-of-way occurring or detected during the maintenance period. (d) If the contractor or developer fails to remedy any such defects within a reasonable time, the selectmen may without prejudice to any other remedy and after having given thirty (30) days' advance written notice to the contractor or developer and the surety company involved cause the required repairs to be made and bill the contractor or developer or surety company for the cost of the work involved. (Comp. Ords. 1983, pg. 73, , VI) Sec Final acceptance; maintenance responsibility. No recommendation for final acceptance of a road by the town shall be given by the board of selectmen until the construction of all public improvements have been completed in accordance with the approved plans and profiles, except as provided for in section In addition, the developer or contractor shall fully maintain such roads, including the providing of snow removal service, until the road has been accepted by the town. (Comp. Ords. 1983, pg. 73, , VI) Sec Partial release. Application may be made to the board of selectmen for approval of a portion or portions of the total approved work. Such portion or portions must be extended from an existing town road, and must be fully completed prior to petition for approval. If such approval is given, a prorated reduction in the performance bond or deposit may be allowed. In this case, all provisions of the above sections of this article apply with full force except that, if a prorated reduction in the performance bond is allowed, the maintenance period and the maintenance bond as provided for in section may be required for a two-year period. (Comp. Ords. 1983, pg. 73, , VII) Secs Reserved. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 95

96 Bristol Code of Ordinances APPENDIX B SUBDIVISION REGULATIONS* *Editor's note: The subdivision regulations of the city, adopted on June 15, 1966, by the city planning commission, are set out herein as adopted, with amendments through September 18, A history note appears at the end of each amended section indicating the date of adoption of the amendment. Material enclosed in brackets has been added where necessary for clarification. Cross references: Administration generally, Ch. 2; buildings and building regulations, Ch. 5; flood and erosion control, Ch. 8; housing, Ch. 12; parks and recreation, Ch. 16; planning generally, Ch. 18; streets, sidewalks and public places, Ch. 21; sewage disposal requirements in subdivisions not serviced by city sewage system, 22-62; enforcement by citation officers, Ch. 23; inland wetlands regulations, App. A; zoning regulations, App. C; flood damage prevention, App. D. [Section] 1. Definition of Terms Commission shall mean the City Planning Commission of Bristol, Connecticut Streets or street shall mean and include streets, avenues, boulevards, roads, lanes, alleys, drives, terraces, and other ways and shall meet the requirements of Section 2.04A hereafter Subdivision hall mean the division of a tract or a parcel of land into three (3) or more lots for the purpose, whether immediate or future, of sale or building development, and whether or not a new street or streets must be constructed; expressly excluding development for agricultural purposes. The term "subdivision" shall also include resubdivision and when appropriate to the content, shall relate to the process of subdividing or to the land or area subdivided, and shall include subdivision for business, industry or other purposes Resubdivision shall mean a change in a map of an approved or recorded subdivision or resubdivision if such change (a) affects any street layout shown on such map, or (b) affects any area reserved thereon for public use, or (c) diminishes the size of any lot shown thereon, if any of the lots shown thereon have been conveyed after the approval and recording of such map Revision of subdivision as used in these regulations means only a minor change in size of property lines inside of the area insofar as no street entrance or future public property is changed and no affected part of the land is already sold. Such minor change shall not violate in any way the zoning ordinance of the City of Bristol or these regulations. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 96

97 1.06 Subdivider shall mean the owner of record or agent at the time of filing and recording of an approved subdivision map in the City Clerk's office Applicant shall mean the owner of record or agent at the time of filing of a subdivision plan with the Commission Council shall mean the City Council of the City of Bristol Street Committee shall mean the Public Works and Street Improvement Committee of the City Council of the City of Bristol Engineer shall mean the City Engineer of the City of Bristol Approval: A. (Deleted June 23, 1970.) B. Final Approval shall mean the approval of the Final Subdivision Plan within the meaning of the General Statutes upon submission and review of all required documents as specified and required in this regulation. [Section] 2. General Regulations Information Available: A. The applicant should avail himself of the assistance of the Commission before preparation of applications or plans to save unnecessary time and expense due to a lack of understanding of these and other regulations. B. The applicant should familiarize himself in advance with all State and City regulations relative to health, buildings, roads and other pertinent data so that he is thoroughly aware of the obligations and standards expected. He should study thoroughly these subdivision regulations and the requirements contained herein, and the Plan of Development. C. The applicant should consult with parties potentially interested with him (such as lending and mortgage institutions) and with the ultimate users of the subdivision with a view to reaching firm conclusions regarding what part of the market demand should be served, the suitability of the location of the proposed subdivision, and the most advantageous subdivision plan and other features of the proposed subdivision [Approval of Plans. ] Plans for a subdivision must have final approval by the Commission and be filed and recorded in the office of the City Clerk before any owner or agent of the owner shall transfer or sell, or agree to sell, or negotiate to sell, any land from or in a subdivision. The application for final approval of a subdivision shall be submitted to the Commission not more than fifteen (15) days nor less than twelve (12) days prior to a regularly scheduled meeting of the Commission. Applications shall not be considered complete and accepted unless all plans and other data required by these regulations are submitted with the application form. Subdivisions containing five (5) lots or less on a City street may be approved at the meeting at which they are presented, action on all other subdivisions may be deferred until the next regular meeting to allow time for the Commission to investigate the application fully. (Amend. of ; Amend. of ) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 97

98 2.03 [Character of Land To Be Subdivided, etc.] The land to be subdivided shall be of such character that it can be used for building proposed without damage to health or public safety. Land subject to periodic flooding, poor drainage, steep slopes or other hazardous conditions, shall not be subdivided. Land with inadequate capacity for subsurface sanitary sewage disposal shall not be subdivided unless connected to public sewers. Plans for the subdivision of land shall conform with these regulations, the Plan of Development, all updated elements of the Plan of Development, the overall storm drainage plan of the City and all applicable local and state ordinances. Sanitary sewer and water installation shall be made in accordance with the standards and requirements of the City of Bristol Sanitary Code and the Connecticut Public Health Code. The Commission shall not grant approval for new subdivisions or extensions of existing subdivisions proposed by developers and/or owners who, at the time of application, have developments in violation of these subdivision regulations. The Commission's denial shall state the exact reasons for such denial in the Commission record. (Amend. of ) 2.04 [Streets.] Proposed streets shall be appropriate to the topography and location, giving due consideration to contours and natural features, and shall conform to the objectives of the Plan of Development. The proposed streets shall be in harmony with existing or proposed streets especially with regard to safe intersections and when required by the Commission, provision shall be made for future extension of streets into the adjoining land. Street construction shall conform to the Road Construction Specifications and amendments thereto of the City of Bristol, which are hereby made a part of this regulation. A. For the purpose of these regulations, streets shall meet the following minimum requirements. 1. The street right-of-way shall have been legally established by law and shall conform to the Road Construction Specifications and amendments thereto, and shall have at least one intersection with another City street or state highway. 2. The street right-of-way shall have a minimum width of fifty (50) feet. 3. The street shall be one that is not under consideration for discontinuance or realignment by the authority having jurisdiction. 4. The street alignment and grades shall be in harmony with existing and proposed streets and the Plan of Development of the City, and shall conform substantially to these regulations. 5. Storm drainage disposal shall be adequate for present uses, and additional storm drainage created by new subdivisions shall not increase the City's obligations for additional storm drainage disposal on existing City streets, unless approved by the Council. 6. State highways shall be considered to meet the aforementioned standards. B. In the case of subdivisions containing three (3) or more lots and subdivisions requiring construction of new streets, any existing street which provides either frontage to new lots or access to new streets shall meet the minimum standards established and defined in Section 2.04A. Where a subdivision requires undue expenditures by the City to improve existing City streets to conform to minimum requirements as determined by the Council, the Commission may disapprove such subdivision until the City of Bristol approves such expenditures. C. Where a proposed subdivision street pattern connects to an unimproved street in an existing subdivision left for future extension to abutting property, the Subdivision Plan and the Plan- Profiles of the proposed subdivision shall show and include all work required to connect and complete the improvements and utilities between the proposed and existing subdivisions. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 98

99 D. Permanent dead-end streets shall not exceed seven hundred fifty (750) feet in length, and shall terminate in a turnaround one hundred (100) feet in diameter with a completely paved area eighty (80) feet in diameter. E. Temporary dead-end streets, where required by the Commission or where indicated on the Plan, shall not exceed seven hundred fifty (750) feet in length and shall provide required street frontage for not more than fifteen (15) dwellings, whichever is lesser. In such cases, the full width of the right-of-way shall be extended to the subdivision property line and shall be dedicated to the City. The City will require easements to the segments of the turnaround outside the normal road right-of-way width. Easements to such segments will revert to adjoining property owners when road is extended. F. All new streets on the subdivision, which adjoin any undeveloped land capable of being subdivided, shall whenever feasible, be carried to the boundaries of such undeveloped land to provide outlet streets for such territory. Further, outlet streets shall be provided from the development streets to adjoining property at locations acceptable to the Commission and if not provided may be ordered by the Commission. No reserved strips shall be left at the end or side of any street abutting adjoining property. Further, the subdivider dedicating the outlet streets and street extensions shall rough grade all such streets and prepare and stabilize all slopes made necessary by such streets. G. Where a street may now, or in the future, carry other than the neighborhood traffic, and where shown on the Plan of Development, a right-of-way width greater than the required minimum may be required, and such requirements will be determined by the Commission during review of the Plan. H. Subdivision streets shall intersect City streets and other subdivision streets at right angles for a distance of at least one hundred (100) feet from the intersecting street lines unless otherwise approved by the Commission. In no case will intersecting streets be approved with the angle included between the adjoining street lines of less than sixty (60) degrees. Street lines at intersections shall be connected by a curve having a minimum radius of fifteen (15) feet. I. Where a proposed street or drainage system is proposed to be integrated or connected in any manner with a Connecticut State Highway, no approvals will be granted until the Connecticut Highway Department has expressed its approval in writing to the Commission and all necessary permits are secured by the applicant [Setback Lines. ] Building and veranda setback lines shall be indicated on all drawings. Such setback distances shall be in accordance with good practice, and the zoning regulations of the City of Bristol [Street Names. ] Proposed street names are subject to the approval of the Commission in order to avoid duplication or similarity. The applicant shall check all proposed street names with the City Engineer prior to submission. Street names shall be shown on all submission documents [Street Monuments. ] Stone or concrete monuments conforming to City specifications shall be set at the street line at all points of curvature, points of tangency, angle points and other intermediate points as may be required by the City Engineer. The monuments shall be as approved by the City Engineer and set as directed by the City Engineer at the subdivider's The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 99

100 expense. The proposed location of said monuments shall be indicated on the final subdivision plan [Lot Corner Markings. ] Lot corners shall be marked with iron pins at least one-half ( 1/2) inch in diameter by eighteen (18) inches long where not otherwise marked as set forth in [Section] [Lot Size and Layout. ] Lot sizes shall be as required in the Zoning Ordinance of the City of Bristol. Layout of lots shall conform to modern standard practices, and shall be appropriate for the intended construction. Corner lots shall conform to [the] Zoning Ordinance of the City of Bristol. Side lot lines shall generally be at right angles to straight street lines, or radial to curved street lines. Except in cases of unusual topography or property lines, through lots bounding on two (2) generally parallel streets will not be permitted. No parcels, strips or other remnants of land or blocking strips of a size unsuited for a minimum lot shall be left in any subdivision [Water and Sewers. ] All subdivision plans shall make proper provision so that water supply, storm water drainage and sanitary sewage disposal can be installed with respect to all lots. In areas contiguous to brooks, rivers, or other bodies of water, proper provision shall be made for flood control measures. A. In subdivisions to which underground utilities are to be furnished from a public source, all necessary mains, branch offsets to street line of each lot, and fire hydrants shall be installed by the subdivider as approved by the corporation or municipal department having jurisdiction, and to the satisfaction of the recognized authorities of the City, and without expense to the City. B. 1. The subdivider shall install sanitary sewers in all new streets to be constructed in his development and in existing streets with over five (5) lots on the street. All sanitary sewers shall be designed according to City standards and shall be approved by the City Engineer, who shall set terminal elevations for the sewer line. All construction shall be in accordance with the Standard Sewer Specifications, under the inspection of and to the acceptance of the City of Bristol. All sewer construction shall be performed only after issuance of the developer's permit for sanitary sewers by the City Engineer. 2. If accepted City sanitary sewers are located within one hundred (100) feet from any portion of the subdivision, the subdivider shall connect the sanitary sewers constructed by him. 3. If accepted City sanitary sewers are located more than one hundred (100) feet from any portion of his subdivision, the subdivider shall construct a "capped" or "dry" sanitary sewer for future connection when sanitary sewers are extended to that area. "Capped" sewers shall be extended to include complete service to the entire subdivision, with outlet at subdivision boundary. The subdivider will be required to perform all necessary tests and construct all underground sanitary sewage disposal facilities as may be required by these regulations. The subdivider may elect to extend his sanitary sewers to the existing accepted City sanitary sewer if the distance is over one hundred (100) feet from any portion of his subdivision. 4. The subdivider shall furnish and install complete in place, if required to sewer his subdivision, a suitable underground sanitary sewage pumping station and force main. Pumping station, force main and appurtenances shall be designed, approved, constructed, inspected and accepted as required in Paragraph 1. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 100

101 5. If sanitary sewers are not connected at the time of developing and a sewage pumping station will be required for future sewering, the subdivider shall deposit in the City General Sewer Fund the cost of the complete in-place underground sanitary sewer, pumping station, force main and appurtenances for future installation by the City. The City Engineer shall approve the amount of such cost as fair and reasonable and shall be deposited with the City prior to acceptance of any public improvements in the subdivision. 6. City water shall be installed in the subdivision and extended from existing City mains if required by the Bristol Water Department. Design approval, construction, inspection and acceptance shall be as required by the Standards and Specifications of the Bristol Water Department. 7. Gas, electric and telephone utilities shall be installed in new and existing streets as specified by the appropriate utility and shall be subject to the inspection and acceptance of the appropriate City agency. 8. The subdivider shall install laterals from all utilities in new and existing streets to the street line prior to paving of the street. The subdivider shall convey to the City written easements twenty (20) feet in width for sanitary sewer mains and water mains located outside the development's streets for present or future connections or extensions of the City systems. 9. The installation of all City utilities constructed within the subdivision shall be at no cost to the City, the total expense shall be borne by the developer. C. Prior to submission of a Final Subdivision Plan, the applicant must complete the following tests: 1. In areas where private individual sewage disposal systems are proposed, the applicant shall have completed under supervision and in location recommended by the Bristol Public Health Department, one percolation test for each five (5) acres, with a minimum of two (2) tests. A report indicating the location of such tests and the percolation observed shall be completed and submitted by the Bristol Public Health Department. 2. In all areas, the applicant shall dig one test pit per five (5) acres in location specified by the City Engineer to a depth of six (6) feet or refusal. The applicant shall arrange to perform such tests in the presence of a representative of the Commission or an appropriate authority. A sketch indicating the location of the test pits and soil characteristics encountered shall be submitted to the Commission before approval. D. No subdivision application shall be accepted by this Commission which contains an area or areas classified as Inland Wetland on the map of Inland Wetlands in Bristol prepared by the State Department of Environmental Protection, currently on file in the office of the City Engineer, unless the Bristol Conservation Commission has given its approval of the use of such area or areas and/or the proposed developer has included in his subdivision plans the requirements of the Conservation Commission for use of such area or areas. The approval, and/or requirements for use, or denial by the Conservation Commission shall be in writing. (Amend. of ; Amend. of ; Amend. of ) 2.11 [Off-Street Parking. ] All lots shall provide off-street parking in accord with the Zoning Commission of the City of Bristol [Landscaping. ] The Commission reserves the right to require tree planting, and such landscape features as are appropriate to the area being developed. Removal of stripped topsoil or The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 101

102 surplus earth materials from the subdivision area shall not be permitted other than in accord with the Zoning Ordinance. See [section] 8.2 A. Public Open Spaces. In a subdivision of any tract or tracts of land containing twenty-five (25) acres or more, and in areas designated on the Plan of Development as open space or recreation areas, the Commission may require the reservation of open space, at the proportionate rate of one acre per fifty (50) building lots, as provided in the General Statutes. 1. When only a part of such tract is to be developed immediately, and the subdivider shall agree to dedicate an area of land in the undeveloped portion of such tract equal to the requirements for open space in the developed portion, and shall grant to the City an option to accept such dedication when such undeveloped portion is hereafter subdivided, then the Commission may waive the requirements for immediate provision of open space in a subdivision which is a part of a larger tract of land. 2. Such open spaces shall abut or have direct access to a public street through a right-of-way dedicated to public use. 3. When a property line of a subdivision abuts an existing public open space, the Commission may require the new public open space lines to form a continuation of the existing area to provide a single large unified area. 4. No public open space containing less than one acre of area will be approved unless, in the judgment of the Commission, potential future development of adjoining land makes such smaller area feasible, or unless the area is a continuation of brook and stream protection areas, as noted in the Plan of Development. B. Tree Planting. Due regard shall be given to the preservation and potential enhancement of existing natural features, large trees, scenic points, and other assets of a community nature. Where no trees are preserved in the street yard, each lot shall have two (2) trees of not less than one and one-half (1 1/2) inches caliper planted on it by the subdivider at his expense. These trees shall be of a quality which meets the requirements of the American Association of Nurserymen, Inc., and of a species approved by the appropriate authority of the City of Bristol. These trees shall be planted in the area lying not less than six (6) nor more than twenty (20) feet inside the street line. An amount covering the cost of tree planting shall be included in the Performance Guaranty (Section 4.03). In areas where roads are accepted and the bond released before houses are constructed and trees are planted, the portion of the bond covering tree planting shall be excluded from that portion of the bond released, and shall be retained by the City until the trees are in place [Seal, Certification of Documents. ] All documents required to be completed by a Registered Land Surveyor or Professional Engineer shall bear the seal and certification of a Professional Engineer [Street Lighting. ] The developer shall provide street lighting poles or standards where electric utilities are to be placed underground. The developer shall provide temporary street lighting from the time of initial construction of roads until the time of acceptance of roads by the City of Bristol, as outlined in [Section] 4.03B of this regulation. (Amend. of ) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 102

103 2.15Sidewalks. A. Unless specifically waived by the Commission, all streets in residential subdivisions shall have sidewalks on both sides of the pavement and for the entire length of the street, constructed in accordance with the Road Construction Specifications of the City of Bristol. Where subdivision land abuts an existing street, a sidewalk on the subdivision side, and for the full frontage of subdivision land shall be installed. Sidewalks shall be completely installed before the street will be considered for acceptance by the City. (Amend. of ) [Section] 3. Preliminary subdivision plans. (Entire section deleted June 23, 1970.) [Section] 4. Final Subdivision Plans [Submission. ] The applicant shall submit Final Subdivision Plans in conformance with this section. If the applicant submits a Final Subdivision Plan on only a portion of the available land to be subdivided, he shall submit a General Plan covering the entire area of the tract. Said General Plan shall not be construed as a Subdivision Plan within the meaning of Sections 8-26, 8-26a, 8-26b and 8-26c of the General Statutes of the State of Connecticut. The General Plan shall indicate the approximate outline and sequence of those portions of land for which subsequent final subdivision plans will be submitted. Said General Plan shall be drawn to a scale of not less than 1" = 100' [and] shall show: (1) Title and boundaries of the tract, total acreage, name of owner, scale of map, date and north arrow. (2) Names of adjoining property owners, adjoining subdivisions and existing building on or adjacent to the tract. (3) Contours at ten (10) foot intervals, locations of all watercourses and drainage areas on and one hundred (100) feet outside the boundaries of the tract. (4) Proposed road and lot layouts. The existing City streets adjacent and proposed or future intersections of streets in the tract with these City streets. A. All Final Subdivision Plans and maps submitted shall be as described in [Section] 4.01B with the addition of an original linen transparency or polyester film and a linen reproduction plus seven (7) paper copies. B. The Final Subdivision Plan shall indicate disposition of land into lots, streets, open spaces and drainage courses. It shall be based on a boundary survey conforming to Class A-2 Transit Survey as set forth in the code of the Connecticut Technical Council, Inc., dated January 1945; and it shall be certified under seal by a land surveyor and professional engineer licensed in Connecticut. Distances on the Boundary Survey shall be to the nearest one hundredth of a foot, and bearings to be nearest ten (10) seconds. C. The Final Subdivision Plan shall further indicate: 1. Streets to be constructed with stations, curve data, widths of paving, rights-of-way and easements. Station pluses shall be used. 2. Proposed radii of curvatures at intersections of streets and proposed names of streets. 3. Proposed lots with dimensions and areas in square feet or acres. 4. Proposed building and veranda setback lines. 5. Proposed public land areas and use. 6. Existing and proposed survey monuments. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 103

104 7. Existing and proposed watercourses, ponds and drainageways. 8. Existing contours, based on USGS mean sea level datum, shall be indicated and certified by a land surveyor or professional engineer licensed in Connecticut. For relatively level areas, the existing contours shall be shown at one or two (2) foot intervals with spot elevations at high and low points. For rolling or rough land, the existing contours shall be shown at five (5) foot intervals with spot elevations at high and low points. 9. Present wooded areas by foliage line. 10. Recognized landmarks, swamps, private roads and paths within the area to be subdivided and for a minimum of one hundred (100) feet beyond the boundary lines. 11. In land of difficult topography, where most of the lots are to be developed by the subdivider, a preliminary site grading plan may be required, and such plan shall become part of the Final Subdivision Plan. Where a site grading plan is required by the Commission, land shall be brought to final grades as shown, and lot grades exceeding five (5) per cent or subject to erosion shall be stabilized with a cover crop. 12. All easements necessary for the installation of sanitary or storm sewers or water mains. Said easements shall be recorded in the City of Bristol and certified to the Commission by the City Clerk before final approval is granted. 13. Title and boundaries of proposed subdivision and total acreage, name of owner, scale of map, date and north point, names of proposed streets. 14. Names of adjoining property owners, subdivision, existing buildings on and/or within one hundred (100) feet of parcel. 15. Key map at scale of applicable sheet of assessors map relative of proposed subdivision to existing City streets and public utilities and proposed or future intersections with these streets and utilities. 16. Data on percolation tests and test pits as outlined in [Section] 2.10C 1 and 2 as may be required by Bristol Health Department for subdivisions without City sanitary sewers. 17. Finished grading contours for the entire subdivision based on USGS mean sea level datum shall be indicated on a separate plan showing street layout, lot layout, and existing contours and shall conform to the tolerances specified in Paragraph 8 above. Finished grading shall not leave any pockets to trap water and suitable piped drainage shall be provided if pockets cannot be eliminated. Finished grading shall not discharge water onto abutting property and no grading shall change the direction of surface flow as existed prior to grading. Grading Plan shall be of a scale not less than 1" = 40' and shall be binding upon the developer and/or builder unless a modification is approved by the Commission. (Amend. of ) 4.02Plan-Profile Drawings. A. Plan-profile drawings of all proposed streets shall be submitted with the subdivision plan. Plan-profiles shall be at a scale of 1" = 40', in plan, and 1" = 40' horizontal and 1" = 4' vertical in profile. Elevations shall refer to USGS datum. Drawings shall include the following: 1. Layout of proposed streets in both plan and profile indicating right-of-way dimensions as shown on the Final Subdivision Plan, width of right-of-way and paving. Existing and proposed center line grade lines with stations every fifty (50) feet, vertical curve data and per cent of grade. 2. Typical cross section of the streets with paving, shoulders, curbs and ditches in detail. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 104

105 3. Plan-profile maps shall also show all utility lines, encroachment lines, and all easements for utilities, drainage, and other rights-of-way, with location, size and inverts of existing and new culverts, and the entire drainage system. 4. Drainage analysis map shall show the tributary watershed area and downstream area affected by runoff. Drainage computations shall consider the entire watershed area; criteria and computations used in determining pipe sizes shall be submitted on 8 1/2 11 inch sheets. All storm drainage shall conform to a twenty-five (25) year design storm. Within the limits of the subdivision, all storm drainage, watercourses, drainage ditches, etc., shall be enclosed in suitable closed conduit unless specifically waived by the Planning Commission. Open drainage allowed shall be in ditches of acceptable design with protection to prevent erosion and other damage to the slopes. B. Where required in the judgment of the Commission, street intersections shall be developed at a larger scale, showing catch basins, gutter, road center line, curb and sidewalk elevations. C. The name under which the proposed subdivision is to be filed in the office of the City Clerk and the name of the owner or owners shall be indicated on all maps and drawings. (Amend. of ) 4.03 Bond Requirements. Before the approval of a subdivision by the Planning Commission or before any building permit is granted or any lots sold, a Performance Guaranty shall be filed with the Commission, guaranteeing completion of street improvements, storm drainage, sanitary sewers, water supply and any other improvement required by the Commission. The satisfactory completion of said improvements shall be within eighteen (18) months after the filing of the Performance Guaranty with the Commission. The Performance Guaranty (Bond) shall be filed with the Commission prior to granting of final approval of the subdivision unless waived by the Commission. The Developer must make, in writing, a request to waive the filing of the Performance Guaranty with the application for approval. The Commission may, if it determines it to be in the best interest of the City of Bristol, waive the filing of the Performance Guaranty until any lots in the subdivision are offered for sale or a building permit is issued, for a period not to exceed eighteen (18) months after the final approval of the subdivision. The granting of a waiver will constitute a condition of the approval of the subdivision. Any subdivision for which a Performance Guaranty (Bond) has not been filed within eighteen (18) months after the final approval by the Commission will be null and void. The Commission will note this condition of approval on the approved plan of the subdivision filed with the City Clerk. The Performance Guaranty shall contain a clause permitting the Commission to, after ten (10) days written notice to the Developer of failure to complete the required improvements within the prescribed time, call that portion of the Performance Guaranty necessary to complete the required improvements for acceptance. Upon written notification by the Developer of his inability to complete the required improvements within the specified time and the reasons for noncompliance, the Commission may extend the completion time of said improvements, for a period not to exceed twelve (12) months, if they deem the reasons for noncompliance a just cause. The original Performance Guaranty shall remain in force for this extension. The Commission shall notify the Building Inspector of noncompliance with the completion of the improvements within the required time in cases where the Commission declines an extension of the completion time. The Building Inspector will be requested to withhold building permits and certificates of occupancy until the required improvements meet the acceptance of the Commission. The Performance The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 105

106 Guaranty shall be in the form of a Performance Bond, and shall be approved by the Corporation Counsel. Said Guaranty shall be issued in favor of the City of Bristol. The surety company issuing the bond, shall be licensed to transact such business in the State of Connecticut. The Performance Guaranty shall be in an amount equal to one hundred (100) per cent of the cost of the improvements required by this Commission. The cost of said improvements shall be estimated by the Developer's Professional Engineer using all available data to give a true and reasonable cost. The estimated cost shall be submitted to the City Engineer for review and acceptance. The Performance Guaranty shall not be released until: (1) The Superintendent of Public Works and the City Engineer have certified that the required street improvements, storm drainage, sanitary sewers, water system and all other improvements required by the Commission have been completed to conform to these Subdivision Regulations and the Standard Specifications of the City of Bristol. (2) The City Council shall have accepted the streets. (3) All deeds covering transfer of land for public use, all easements, rights-of-way and rights to drain onto, through or across private property shall have been submitted to the Commission and approved by the Corporation Counsel. The cost of recording of all deeds, easements, rights-ofway and rights of drain shall be borne by the developer. The Commission shall require the developer to file a Maintenance Guaranty before the release of the one hundred (100) per cent Performance Guaranty. The Maintenance Guaranty shall be in an amount not to exceed twentyfive (25) per cent of the original Guaranty, as required by the Superintendent of Public Works and the City Engineer. It shall be a Performance Bond as above specified for Performance Guaranty. The Maintenance Guaranty shall remain in effect until all buildings on the subject subdivision have been completed, and shall be a guarantee that any damage to the accepted street and its appurtenances shall be repaired and said street upon completion of all buildings shall be in the condition it was when the street was accepted. (Amend. of ; Amend. of ) 4.04 Approval of Final Subdivision Plan. A. An application shall not be considered complete until all the following has been submitted to the Commission fifteen (15) days before a regular meeting: 1. A written application on the form provided by the Commission. 2. A certified check payable to the City of Bristol. The fee shall be at the rate of fifteen dollars ($15.00) per lot but not less than fifty dollars ($50.00). 3. Percolation tests and test pits. 4. Final Subdivision Plan. 5. Plan-Profile drawings and related documents. 6. Deeds covering rights-of-way and easements for all utilities. B. Approval, modification or disapproval shall be made within sixty (60) days of submission of the completed application as outlined above. Approval of the Subdivision Plan shall be signified by endorsement of the signature of either the Chairman of the Commission or the Secretary and the applicant shall be notified of approval by Certified Mail. If the Final Subdivision Plan is disapproved, the Commission shall include in minutes of its meeting the reasons for disapproval. Notice of Commission action shall then be published in accord with Section 8-26, as amended, of the General Statutes, revision of C. Upon request of the Commission, the Health Office or Sanitary Inspector shall check plans and report to the Commission in respect to the standards of public health particularly for sewage disposal and water supply. (Amend. of ; Amend. of ; Ord. of ) The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 106

107 4.05 Filing. Upon approval, all final plans of subdivision shall be filed and recorded by the developer at his expense in the office of the City Clerk, and any plan not so filed and recorded within thirty (30) days following its approval by the Commission, or within thirty (30) days of the date upon which such plan of subdivision is taken as approved by reason of the failure of the Commission to act, shall become null and void. No such plan of subdivision may be recorded or filed by the City Clerk until its approval has been endorsed thereon, and the filing or recording of a plan of subdivision without such approval shall be void Effective Date. The date of signing the plans is the date on which the approval of the final plans becomes effective Public Hearing. The Planning Commission may hold a public hearing regarding any subdivision proposal if, in its judgment, the specific circumstances require such action Acceptance of Improvements. Requirements and procedures for the acceptance of streets shall be in accord with the Road Construction Specifications of the City of Bristol. [Section] 5. Resubdivision Procedure. The procedure for a resubdivision and the requirements for its application are the same as a normal subdivision with one exception as follows: A. No plan of resubdivision shall be acted upon by the Commission without a public hearing. Notice of the public hearing shall be given not less than seven (7) days before the date of hearing by publication once in a newspaper of general circulation in the City of Bristol, and by sending a copy thereof by registered mail to the applicant. 5.02Approval. A. After such public hearing, the Commission may grant approval or disapproval [of] said application in accordance with Section 8-26, as amended, of the General Statutes, revision of B. No resubdivision shall be approved if, in the judgment of the Commission, it would result in the establishment of lots substantially smaller in size than the typical lot originally established by the existing subdivision or resubdivision. [Section] 6. Administration Penalties. Chapter 126 of the General Statutes, 1958 Revision, as amended, provides: "Any person, firm or corporation making any subdivision of land without the approval of the Commission shall be fined not more than two hundred dollars for each lot sold, or offered for sale or so subdivided." 6.02 Validity. If any section, subsection, sentence, clause, phrase, or portion of these regulations is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions hereof. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 107

108 6.03 Hardship. Where the Commission finds that extraordinary hardship may result from strict compliance with these regulations, it may vary the regulations so that substantial justice will be done and the public interest secured; provided that such variation will not have the effect of nullifying the intent and purpose of these regulations Appeals. Any person aggrieved by an official action of the Commission may appeal therefrom within fifteen (15) days of the publication of such official action to the Court of Common Pleas for the County of Hartford Effective Date. The Commission shall hold a public hearing on these regulations. Notice of the time, place and purpose of the hearing shall be given by publication in a newspaper having a general circulation in the City of Bristol, Connecticut, at least seven (7) days prior to the date of the hearing. These regulations shall then be published in some newspaper having a general circulation in the City of Bristol, Connecticut, and shall become effective fifteen (15) days after publication thereof and upon filing a copy of said regulations in the office of the City Clerk Amendments. The Planning Commission may from time to time propose alterations or amendments to these regulations. The Commission shall hold a public hearing on the alterations or amendments. Notice of the time, place and purpose of the hearing shall be given by publication in a newspaper having a general circulation in the City of Bristol, Connecticut, at least seven (7) days prior to the date of the hearing. Said alterations or amendments shall then become effective fifteen (15) days after publication thereof and upon filing a copy of said alterations or amendments in the office of the City Clerk. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 108

109 New Britain Code of Ordinances ARTICLE IX. PERFORMANCE GUARANTEE Sec Statement of purpose. The purpose of this article is to establish a uniform policy and procedures to be used in connection with the providing of performance guarantees in all projects where such performance guarantees are required pursuant to ordinance or to regulations or where such performance guarantees are determined by the common council, the purchasing agent, or a city board or commission to be necessary in order to protect the interests of the city. (Ord. of 8-94) Sec Definitions. The following definitions shall apply in the interpretation of this article. Contractor shall mean any developer, permittee, vendor, whether an individual, partnership or corporation who undertakes any activity or project for which a performance guarantee is required by statute, ordinance, regulation or contract to secure performance of work in compliance with the standards, requirements or contract provisions applicable to such work. Contractor bond fund shall mean a separate fund maintained by the city treasurer into which all cash, certified checks or bank checks delivered to the city to guarantee performance of work under a project are deposited. Depositor shall mean any individual, partnership or corporation who has delivered cash, certified check or bank check to the city to guarantee performance of work under a project for which a performance guarantee is required. Performance guarantee shall mean cash, certified check, bank check, bank letter or credit or surety bond delivered to the city by a contractor to secure performance of work undertaken pursuant to a contract to which the city is a party, a permit issued by the city, or an approved plan for development or subdivision of property within the city. Project shall mean any activity or work undertaken pursuant to a contract to which the city is a party, a permit issued by the city, or development or subdivision of property within the city. (Ord. of 8-94) Sec When performance guarantee required. Performance guarantees shall be required in connection with all projects for which Code of Ordinances and/or any duly promulgated regulation requires the posting of a performance guarantee by the contractor, developer, or permittee, including but not limited to the following: (1) Private development, including subdivisions and site development. The minimum amount of the performance guarantee shall be not less than the cost of constructing, installing, planting, etc. all improvements required in connection with an approved plan as determined by estimates The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 109

110 prepared by the department(s) approving such plan with the assistance of the city engineer, or as established by statute, ordinance or regulation. (2) Street openings, driveways, curb and sidewalk construction and repair. The minimum amount of the performance guarantee shall be established by the board of public works and shall not be less than the amount determined by said board to be sufficient to indemnify the city against any loss or expense for any claim arising or resulting from the work performed and against any loss or expense in repairing, correcting or replacing work not performed to acceptable city standards. (3) Drainage permits. The minimum amount of the performance guarantee shall be in an amount deemed sufficient by the board of public works to indemnify the city against any claims which may arise out of or result from work performed. (4) Contracts for goods and services. A performance guarantee shall be required for all contracts for goods or services entered into by the city where the contract price is fifty thousand dollars ($50,000.00) or more. The minimum performance guarantee shall be an amount determined by the purchasing agent on consultation to the procuring department to be sufficient to protect the interests of the city. A performance guarantee shall be required for contracts of less than fifty thousand dollars ($50,000.00) when the purchasing agent, in consultation with the procuring department head, deems in necessary in order to protect the interests of the city or as required by statute, ordinance or regulation. (5) Personal service contracts. Performance guarantee for personal service contracts shall be determined on a case by case basis and shall be required when the department securing such services deems it necessary in order to protect the interests of the city. When performance guarantees are required, the terms of such guarantees shall be incorporated in the contract document executed by the city. (Ord. of 8-94) Sec Acceptable form of performance guarantee; criteria for acceptance. Where performance guarantees are required, only one of the following is acceptable: (1) Cash or certified check or bank check payable to the order of the city. (2) Irrevocable bank letter of credit. Letters of credit will be acceptable only if the contractor/developer has provided information acceptable to the city concerning the financial stability of the individual or company providing the letter of credit and the financial stability of the bank issuing the letter of credit. The city reserves the right to refuse to accept a letter of credit as a performance guarantee if, in its opinion, either the individual, company or bank does not demonstrate sufficient financial stability. Any letter of credit provided as performance guarantee shall include a provision that such letter of credit shall be automatically renewed by the issuing bank upon its expiration date. (3) A surety bond issued by an insurance company licensed to do business in the State of Connecticut and which is covered by the Connecticut Insurance Guaranty Association. The company issuing the bond shall have a Best's rating of no less than A:VII or otherwise be deemed acceptable by the finance department of the city. The corporation counsel of the city, or his/her designee, shall review all performance guarantee instruments for acceptability as to form and content. Copies of all performance guarantee The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 110

111 instruments shall be retained by the purchasing agent. All originals of performance guarantee instruments shall be transmitted to the office of the city treasurer and maintained therein. (Ord. of 8-94) Sec Procedures for monitoring performance. The department of the city responsible for administering the project shall monitor the work performed to determine if the performance guarantees shall be modified, called prior to expiration or released. Thorough documentation of work to be performed and work performed shall be maintained by the department administering the project. No performance guarantee shall be released until a determination has been made by the department administering the project that the work to be performed has been completed or partially completed so as to warrant a release or partial release of the performance guarantee and written authorization has been forwarded to the city treasurer for the release or partial release of the performance guarantee. (Ord. of 8-94) Sec Contractor bond fund. All cash, certified or bank checks delivered to the city as performance guarantees shall be deposited by the city treasurer in a separate account designated as the contractor bond fund. (Ord. of 8-94) Sec Interest for cash performance guarantee. The city shall pay interest with respect to cash deposits it holds for performance guarantee for a period of six (6) months or longer according to the following schedule: TABLE INSET: Amount of Deposit Interest Income Participation $ 0 to $ 5,000 None $ 5,001 to $10,000 50% city/50% depositor $10,001 to $50,000 40% city/60% depositor $50,001 and over 30% city/70% depositor The finance department shall be responsible for maintaining records of interests accrued on cash deposits and shall issue to the depositor a 1099-INT statement for all calendar years ending December 31. (Ord. of 8-94) Secs Reserved. The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 111

112 Section 3 Examples of Bonds The Connecticut Conference of Municipalities Information Kit Construction Bonds Page 112

113 CCM: THE STATEWIDE ASSOCIATION OF TOWNS AND CITIES The Connecticut Conference of Municipalities (CCM) is Connecticut s statewide association of towns and cities. CCM represents municipalities at the General Assembly, before the state executive branch and regulatory agencies, and in the courts. CCM provides member towns and cities with a wide array of other services, including management assistance, individualized inquiry service, assistance in municipal labor relations, technical assistance and training, policy development, research and analysis, publications, information programs, and service programs such as workers compensation and liability-automobile-property insurance, risk management, and energy cost-containment. Federal representation is provided by CCM in conjunction with the National League of Cities. CCM was founded in CCM is governed by a Board of Directors, elected by the member municipalities, with due consideration given to geographical representation, municipalities of different sizes, and a balance of political parties. Numerous committees of municipal officials participate in the development of CCM policy and programs. CCM has offices in New Haven (headquarters) and in Hartford. 900 Chapel Street, 9th Floor New Haven, Connecticut Tel: (203) Fax: (203) [email protected] Web Site: