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SFAA and Local Partners Testify on Bonding Requirements for P3s in Indiana

Wednesday, September 14, 2016  

SFAA and Local Partners Testify on Bonding Requirements for P3s in Indiana 

SFAA and its local partners recently testified before the Indiana study committee (Committee) regarding whether Indiana should amend its three existing P3 laws to specifically require bonding of the design and construction portion of all future P3 projects. In particular, our witnesses addressed the current I-69 P3 project under which subcontractors have not been paid and explained the benefits that a 100% bond would have provided. The Indiana I-69 project is a $325 million road project for which the Indiana Finance Authority accepted a 5% payment bond, which means that there is around $15 million in bond coverage. Notably, right before the Committee’s meeting, the Indiana Finance Authority gave notice that it would find the private partner in default of its obligations on the I-69 project after a major subcontractor walked of the job, which has generated a lot of media coverage. The Committee did not make any decisions on the bonding issue at the hearing, but rather agreed that the P3 issue needed more study. We expect a report in November.

Members should visit Government Relations / General Info (Members) for more information.

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