Surety Bond Quarterly - Summer 2015 - 30

Feature

NASBP Attorney Advisory Council
Participants Opine on Current
Risk Management Challenges and

Business Opportunities
NASBP IS PLEASED to announce an exciting new initiative -
the Attorney Advisory Council (AAC). The AAC is comprised
of eight lawyers with broad and deep knowledge and experience in various relevant sectors of the industry, including
contract surety, commercial surety, construction, and/or
government contracts.
The mission statement for the AAC states as follows:
The NASBP Attorney Advisory Council is constituted
for the purpose of serving as a resource team to
NASBP and providing substantive content to NASBP
for articles, programs, and presentations on surety,
government contracts, and construction law topics
for the betterment of the surety industry.

Barron Avery
Baker & Hostetler LLP
Washington, DC
What should federal construction contractors be most concerned about in the
coming year?
Answer: Compliance plans. Federal construction contracts require contractors to maintain numerous
compliance plans, such as business and ethics compliance
plans, anti-human trafficking compliance plans, and government property management plans. A federal contractor's failure to maintain adequate compliance plans could
place the contractor at risk for a civil False Claims Act (FCA)
suit and other negative consequences. With the noticeable
uptick in FCA enforcement over the past few years, adequate
compliance plans are more important than ever. Federal
construction contractors should therefore ensure that their
compliance plans meet contractual requirements, and a
regularly scheduled "check-up" of those compliance plans
will go a long way to mitigating contractors' FCA risk.

Adrian Bastianelli
Peckar & Abramson, PC
Washington, DC
How will increased fraud enforcement
impact sureties?
Answer: The government has dramatically
increased the vigor with which it pursues
fraud and false claims in construction contracting. Generally,
a surety will not be responsible for its principal's fraud or
false claims unless the surety participated in the fraud or
conspired with the principal. The mere fact that the surety

30

SURETY BOND QUARTERLY | SUMMER 2015

The distinguished attorneys who serve on the Attorney
Advisory Council comprise a valuable NASBP "resource
team." These lawyers will provide articles for the various
NASBP publications, including Pipeline and Surety Bond
Quarterly; participate in NASBP Virtual Seminars; develop
articles for SuretyLearn.org; assist with the development of
various online courses; and provide in-person presentations
on various topics at the Annual Meeting, Regional Meetings,
and special conferences and seminars.
As a brief introduction to the attorneys serving on the
AAC, each attorney responds below to a question posed on
a current, compelling topic of interest to surety professionals
and their contractors and subcontractors.
issued bonds for a principal that submitted a false claim
should not trigger liability.
A completing surety, however, is not in the same situation.
The surety will be responsible for false or fraudulent claims it
submits. Some sureties do not understand their obligations
and might be ill equipped to avoid the pitfalls in pursuing
payment from the government. As a result, the completing
surety needs to carefully review its claims and payment
demands to ensure that there is a factual and legal basis and
that the claimed costs are allowable, allocable, and reasonable. It cannot blindly rely on its principal. Failure to perform
such a review can expose the surety to significant liability.

Jeff Frank
Alber Crafton, PSC
Troy, MI
What can we expect in the world of
commercial surety in the next few years?
Answer: According to the Wells Fargo 2015
Insurance Market Outlook, fierce underwriting competition, too many carriers, and insufficient client
need will result in continued softening of rates.
Premium is down in construction surety. As a result, a
number of new carriers have entered the commercial surety
market. Because there is already excess capacity in that
market, the new carriers may only stay in this market for the
next one to two years. In addition, it is questionable if there
is sufficient need in the commercial surety marketplace to
generate sufficient revenue for these carriers. They may
choose to return to the contract surety market as the need
there increases. There is also currently more market capacity
available than there is client demand for commercial surety.


http://www.SuretyLearn.org

Table of Contents for the Digital Edition of Surety Bond Quarterly - Summer 2015

NASBP Upcoming Meetings & Events
2015-2016 NASBP Executive Committee
From the CEO - There is Poetry in Surety Claims, Surely
Practical Insights: What You Need to Know - Hiding in Plain Sight: Specifications as a Source of Risk
Profile: President Susan Hecker
Developing Your Leadership Vision
Liability Issues - Can Public Owners be Held Liable to Subcontractors and Suppliers for Failure to Require General Contractors to Obtain Required Payment Bond?
An Introduction to Probate Bonds
Class Act - Surety Team’s Cooperative Efforts Enable School to Open on Time
NASBP’s Attorney Advisory Council - Participants Opine on Current Risk Management Challenges and Business Opportunities
The AIA Describes Updated and Expanded Design-Build Documents Family
Contractor Practices That may Result in Construction Claims to Recover for Delays and increased Costs
NASBP Annual Meeting Speakers - Veterans can benefit private sector, but need help finding jobs
Index to Advertisers
Surety Bond Quarterly - Summer 2015 - cover1
Surety Bond Quarterly - Summer 2015 - cover2
Surety Bond Quarterly - Summer 2015 - 3
Surety Bond Quarterly - Summer 2015 - 4
Surety Bond Quarterly - Summer 2015 - 5
Surety Bond Quarterly - Summer 2015 - 6
Surety Bond Quarterly - Summer 2015 - 2015-2016 NASBP Executive Committee
Surety Bond Quarterly - Summer 2015 - From the CEO - There is Poetry in Surety Claims, Surely
Surety Bond Quarterly - Summer 2015 - 9
Surety Bond Quarterly - Summer 2015 - Practical Insights: What You Need to Know - Hiding in Plain Sight: Specifications as a Source of Risk
Surety Bond Quarterly - Summer 2015 - 11
Surety Bond Quarterly - Summer 2015 - Profile: President Susan Hecker
Surety Bond Quarterly - Summer 2015 - 13
Surety Bond Quarterly - Summer 2015 - Developing Your Leadership Vision
Surety Bond Quarterly - Summer 2015 - 15
Surety Bond Quarterly - Summer 2015 - Liability Issues - Can Public Owners be Held Liable to Subcontractors and Suppliers for Failure to Require General Contractors to Obtain Required Payment Bond?
Surety Bond Quarterly - Summer 2015 - 17
Surety Bond Quarterly - Summer 2015 - 18
Surety Bond Quarterly - Summer 2015 - 19
Surety Bond Quarterly - Summer 2015 - 20
Surety Bond Quarterly - Summer 2015 - 21
Surety Bond Quarterly - Summer 2015 - An Introduction to Probate Bonds
Surety Bond Quarterly - Summer 2015 - 23
Surety Bond Quarterly - Summer 2015 - 24
Surety Bond Quarterly - Summer 2015 - 25
Surety Bond Quarterly - Summer 2015 - 26
Surety Bond Quarterly - Summer 2015 - Class Act - Surety Team’s Cooperative Efforts Enable School to Open on Time
Surety Bond Quarterly - Summer 2015 - 28
Surety Bond Quarterly - Summer 2015 - 29
Surety Bond Quarterly - Summer 2015 - NASBP’s Attorney Advisory Council - Participants Opine on Current Risk Management Challenges and Business Opportunities
Surety Bond Quarterly - Summer 2015 - 31
Surety Bond Quarterly - Summer 2015 - The AIA Describes Updated and Expanded Design-Build Documents Family
Surety Bond Quarterly - Summer 2015 - 33
Surety Bond Quarterly - Summer 2015 - Contractor Practices That may Result in Construction Claims to Recover for Delays and increased Costs
Surety Bond Quarterly - Summer 2015 - 35
Surety Bond Quarterly - Summer 2015 - NASBP Annual Meeting Speakers - Veterans can benefit private sector, but need help finding jobs
Surety Bond Quarterly - Summer 2015 - 37
Surety Bond Quarterly - Summer 2015 - Index to Advertisers
Surety Bond Quarterly - Summer 2015 - cover3
Surety Bond Quarterly - Summer 2015 - cover4
Surety Bond Quarterly - Summer 2015 - outsert1
Surety Bond Quarterly - Summer 2015 - outsert2
Surety Bond Quarterly - Summer 2015 - 43
Surety Bond Quarterly - Summer 2015 - 44
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