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City of Kilgore Reconsiders Waiving Bonds after SFAA and Others Inform the City of Risks

Thursday, November 06, 2014  

The City of Kilgore, TX appears to have reversed its decision not to require surety bonds. In a misinformed decision, the City of Kilgore, TX, originally voted to let the construction contract for a new local baseball complex without bonding.The City's rationale was saving money, enabling small contractors to bid on portions of the contract, and allowing large contractors to keep their bonding capacity for other jobs. SFAA immediately jumped on the situation and sent this letter to the Director of Public Works. Because the City was going to proceed with the project and time was of the essence, we also sent this letter to members of the City Council. Only one out of five Council members had voted against the plan to go without bonds. SFAA received a response that same evening from one City Council member that voted for the project without bonding, thanking us for the information and stating that the Council was not aware of all the implications of its decision that are outlined in SFAA’s letter.

According to this ENR article (http://bit.ly/10siihk), the City no longer will be pursuing the idea of waiving performance and payment bonds on this project, a victory for the taxpayers of Kilgore and the subcontractors and workers who will be on the project.


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