Big Project Bonds Leave Holes

摘要

As public-private infrastructure projects across the U.S. grew ever larger over the past few decades, surety bond requirements ballooned with projects of ever-increasing size, effectively pricing out potential project bidders. In order to ensure competition for everything from new bridges and highways to light-rail lines, some states resorted to cutting surety bond requirements down from the traditional 100% coverage, in some cases to just a quarter or third of a project's cost.