Surety Bond Quarterly - Summer 2017 - 27

Feature

NASBP to Release Continuing Education Course:

BY MICHAEL C. ZISA

IN TODAY'S CONSTRUCTION market, joint
ventures play an increasingly important role because they allow contractors
to share risks, resources, knowledge,
and expertise and to increase bonding
capacity and market reach, which in turn
creates new business opportunities that
alone they may be unable or unwilling
to pursue. When considering a joint
venture, it is essential for all of the parties-the contractors, the sureties, and
the bond producers-to understand
and carefully consider a number of factors before taking the leap. Because of
the importance of this topic to its members, two years ago NASBP approached
me and several members of my firm,
Peckar & Abramson, P.C., about producing a series of educational programs
and initiatives on the topic. This led to
live presentations at the 2015 NASBP
Federal Construction Contracting
Seminar, 2016 Annual Meeting and
Regional Meetings, a NASBP Virtual
Seminar, and publication of a number of articles on joint ventures and
related issues in NASBP's Surety Bond
Quarterly magazine.
To further the initiative to educate the NASBP membership on this

important topic, NASBP will soon
release continuing education course
materials for joint ventures in construction. This comprehensive set of
materials addresses essential issues
in joint ventures and uses real world
experiences and lessons learned to
discuss topics including:
* Different forms of joint ventures.
* Advantages and disadvantages
associated with each form.
* Liability between the partners to
the joint venture.
* Distinctions between a joint venture agreement and a teaming
agreement.
* Essential terms of the joint venture
agreement-from the basics, such
as members, purpose, ownership,
and duration to more complex
issues and terms involving capitalization, management, profit sharing, default, indemnification, and
dispute resolution.
The course materials also include
a chapter dedicated to joint venture
opportunities with federal government programs such as the U.S.
Small Business Administration's 8(a)
program and other small and disadvantaged businesses programs that
"set aside" contracts for qualified
businesses. In particular, the chapter
explains the intricacies of the mentorprotégé joint venture program that
allows a qualified small business to
joint venture with a large business
while still taking advantage of the
small business set asides. The joint
venture relationship in this area raises
a myriad of compliance issues that
contractors, bond producers, and
sureties must understand in order

to qualify for the program and also
stay out of trouble for failing to comply with the program's requirements.
The materials discuss in depth the latest changes to the requirements of
these programs.
The final chapter of the materials
addresses issues and considerations
for bond producers and sureties when
bonding a joint venture. Specifically,
the chapter details the materials to
examine during the underwriting
process, which includes review of the
capacity, capital, and character of all
partners in the joint venture and the
terms of the joint venture agreement.
An "angel deal" and why it raises red
flags in the underwriting process is also
addressed. The materials also discuss
the typical indemnity requirements for
bonding a joint venture and key practical issues that bond producers must
understand when assisting clients to
obtain bonds for a joint venture.
In addition to being a useful
resource for bond producers and
other surety professionals, at the conclusion of each chapter is a series of
questions, which allows readers to
test their knowledge of key concepts
and issues.
●
Michael C. Zisa is a partner in the
Washington, DC office of Peckar &
Abramson, P.C. and focuses his practice on construction, surety, and government contracts law and chairs his
firm's Surety Practice Group. Zisa is
recognized by Washington, DC Super
Lawyers in the areas of construction
litigation, surety and government
contracts. He can be reached at
mzisa@pecklaw.com or 202.293.8815.

NATIONAL ASSOCIATION OF SURETY BOND PRODUCERS | WWW.NASBP.ORG

27


http://WWW.NASBP.ORG

Table of Contents for the Digital Edition of Surety Bond Quarterly - Summer 2017

NASBP Upcoming Meetings & Events
2017–2018 Executive Committee
From the CEO: Bringing Summer Heat: A Rundown of “Hot” Stuff in the Evolving World Surrounding Surety
Howard Cowan—Building on a Solid Foundation
Mitigating the Hidden Risks in the “New Normal” Construction Environment
Acting Director of the U.S. SBA Office of Surety Guarantees
Drones Take Flight in the Construction Industry
2017 AIA Contract Documents: Selected Key Changes
NASBP to Release Continuing Education Course: Joint Ventures in Construction
How Can Construction Contractors Expedite Payment on Federal Contracts?
Insurtech for Surety: The Future Is Closer than You Think!
Index to Advertisers
Surety Bond Quarterly - Summer 2017 - Intro
Surety Bond Quarterly - Summer 2017 - cover1
Surety Bond Quarterly - Summer 2017 - cover2
Surety Bond Quarterly - Summer 2017 - 3
Surety Bond Quarterly - Summer 2017 - 4
Surety Bond Quarterly - Summer 2017 - 5
Surety Bond Quarterly - Summer 2017 - 6
Surety Bond Quarterly - Summer 2017 - 2017–2018 Executive Committee
Surety Bond Quarterly - Summer 2017 - 8
Surety Bond Quarterly - Summer 2017 - From the CEO: Bringing Summer Heat: A Rundown of “Hot” Stuff in the Evolving World Surrounding Surety
Surety Bond Quarterly - Summer 2017 - Howard Cowan—Building on a Solid Foundation
Surety Bond Quarterly - Summer 2017 - 11
Surety Bond Quarterly - Summer 2017 - Mitigating the Hidden Risks in the “New Normal” Construction Environment
Surety Bond Quarterly - Summer 2017 - 13
Surety Bond Quarterly - Summer 2017 - 14
Surety Bond Quarterly - Summer 2017 - 15
Surety Bond Quarterly - Summer 2017 - 16
Surety Bond Quarterly - Summer 2017 - 17
Surety Bond Quarterly - Summer 2017 - 18
Surety Bond Quarterly - Summer 2017 - 19
Surety Bond Quarterly - Summer 2017 - Acting Director of the U.S. SBA Office of Surety Guarantees
Surety Bond Quarterly - Summer 2017 - 21
Surety Bond Quarterly - Summer 2017 - Drones Take Flight in the Construction Industry
Surety Bond Quarterly - Summer 2017 - 23
Surety Bond Quarterly - Summer 2017 - 2017 AIA Contract Documents: Selected Key Changes
Surety Bond Quarterly - Summer 2017 - 25
Surety Bond Quarterly - Summer 2017 - 26
Surety Bond Quarterly - Summer 2017 - NASBP to Release Continuing Education Course: Joint Ventures in Construction
Surety Bond Quarterly - Summer 2017 - How Can Construction Contractors Expedite Payment on Federal Contracts?
Surety Bond Quarterly - Summer 2017 - 29
Surety Bond Quarterly - Summer 2017 - 30
Surety Bond Quarterly - Summer 2017 - 31
Surety Bond Quarterly - Summer 2017 - Insurtech for Surety: The Future Is Closer than You Think!
Surety Bond Quarterly - Summer 2017 - 33
Surety Bond Quarterly - Summer 2017 - Index to Advertisers
Surety Bond Quarterly - Summer 2017 - cover3
Surety Bond Quarterly - Summer 2017 - cover4
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