Blog – Info for Contractors!

Crooks Snag Katrina Relief Funds

Katrina Funds Misused In a study of the Katrina funds that were used, it has come to light that many of the firms misused or misappropriated this money.  That is one reason that many governmental agencies use performance bonds, as those bonds can protect against this misuse. See more at the article below. See our WordPress page here. See our Facebook page here. http://www.mcclatchydc.com/news/nation-world/national/article31324073.html Hundreds of crooks snagged Katrina-relief money The 37-foot storm surge and pounding winds that obliterated all but about 40 homes in Waveland were soon followed by another flood — hundreds of millions of federal disaster-recovery dollars flowing from the nation’s capital. It was part of a geyser of billions of dollars to rebuild South Mississippi after the worst natural disaster in American history, an outpouring that also sent auditors and FBI agents scattering across the Coast to trace how the money was spent and who might have tried to steal it. A McClatchy review of criminal prosecutions and of scores of audits by the Inspector General’s Office for the U.S. Department of Homeland Security suggests although most of the money served its purposes, hundreds of crooks and connivers succeeded in snagging some of it. In the scramble to recover, federal requirements often were ignored or went unnoticed. Federal auditors recommended Mississippi recipients of 68 grants from FEMA return or surrender their claims on $131.4 million because the money was mishandled, mainly due to lack of compliance with regulations. Many of those accusations were later erased in successful appeals to FEMA, though some are still unsettled. State officials said they minimized problems with billions of dollars in grant money by having a Jackson accounting firm scour project worksheets in the early stages. The FBI found trouble almost immediately, pursuing criminals who set up fake charity websites around the country to pocket donations from those wanting to help storm victims. Then in 2008, a federal grand jury charged 14 current and former Mississippi state prison convicts with making false claims in attempts to obtain federal disaster money. IN THE RUSH TO CLEAR DEBRIS AND REBUILD, SOME RECIPIENTS OF FEMA MONEY COMMITTED WIDESPREAD VIOLATIONS OF FEDERAL CONTRACTING RULES. In 2011, Earnest Holder, a district supervisor in Greene County, showed the allure of all that money could tempt those in trusted positions of government. He steered Katrina-cleanup contracts to a firm in return for kickbacks, a scheme for which he was sentenced to 6½ years in prison. All told, the U.S. Attorney’s Office for the Southern District of Mississippi brought 336 Katrina-related cases, and the Mississippi Attorney General’s Office prosecuted 95 people. In Waveland, federal auditors unnerved local officials by finding a contractor hired to build a temporary sewer system double-billed the city $811,000 for 379 pumps already covered by the contract and improperly charged $608,000 more for 290 more sewage-storage tanks that weren’t part of the agreement. Now, 10 years after Katrina, the rebuilt town has fewer inhabitants and a shrunken tax base, but it still could be on […]

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Bond for Maize School District

Maize, which is a rival school district from the one in which I grew up in, is getting more performance bonds for the school – specifically the storm shelter. See more at the article below. See our Blogspot page here. See our Tumblr page here. http://www.bizjournals.com/wichita/news/2015/08/24/hutton-construction-selected-as-projects-manager.html Hutton Construction selected as projects manager for Maize’s $70.7M school bond plan Hutton Construction Corp. has been selected as the construction manager at-risk for a $70.7 million school-improvement plan in the Maize school district. Now, district leaders are working with Hutton and representatives from Schaefer Johnson Cox Frey Architecture — the architecture firm of record for this plan — to determine a projects timeline. The bulk of the projects must be completed within three years in accordance with bond regulations, district officials say. District leaders say appointing a construction manager at risk helps to ensure projects are completed on time and on or under budget. The Maize Board of Education awarded Hutton Construction the contract earlier this month. Members of a selection committee and representatives from Schaefer Johnson Cox Frey convened Aug. 6 to interview three potential construction managers. In June, voters in the Maize district approved the larger portion of an $83.55 million bond proposal to upgrade facilities throughout the district. A second ballot item to construct a $12.85 million natatorium for district and community uses was defeated. The $70.7 million bond will fund the construction of tornado safe rooms and a professional center at Maize High School, a new early childhood center and a renovated and expanded Maize Middle School. Additions and improvements at Maize South High School and various athletic upgrades also are part of that total. Maize High School is the only district that lacks a dedicated storm shelter. That building also is the district’s largest population center.

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More bonding capacity for Main Street

Main Street Group gets more bonding capacity.  Hey, it’s always great to see a company get more bonding power.  This allows us to write more performance bonds for our clients.  Way to go guys. See more at the article below. See our Delicious page here. See our Twitter page here. http://www.businesswire.com/news/home/20150826005675/en/U.S.-Treasury-Increases-Main-Street-America%E2%80%99s-Surety#.Vd3TvPZViko U.S. Treasury Increases Main Street America’s Surety Bond Capacity to $93.4 Million August 26, 2015 10:24 AM Eastern Daylight Time JACKSONVILLE, Fla.–(BUSINESS WIRE)–The U.S. Department of the Treasury has raised The Main Street America Group’s NGM Insurance Company’s single surety bond capacity threshold to $93.4 million. The super-regional property/casualty insurance carrier’s previous capacity was $90.5 million. “The Main Street America Group is well established as a stable and consistent partner to independent insurance agents and their customers” The Treasury Department’s expansion of Main Street America’s surety bond capacity reflects the company’s strong financial position which includes surplus of $1.04 billion, total assets of $2.4 billion and net written premium of nearly $1 billion. Additionally, global rating agency A.M. Best recently affirmed Main Street America’s “A” (Excellent) Financial Strength Rating and “a+” Issuer Credit Rating, with a Stable Outlook. “The Main Street America Group is well established as a stable and consistent partner to independent insurance agents and their customers,” said Brian Beggs, vice president/head of Main Street America’s bonds operation. “Our increased U.S. Treasury bond capacity, as well as A.M. Best’s recent affirmation of our strong financial ratings, is a direct result of Main Street America’s disciplined focus on sustainable, profitable growth with our independent agent partners.” Main Street America has provided surety and fidelity products to “Main Street” businesses and individuals since 1961 through its network of independent insurance agents and is licensed to issue surety and fidelity products in 47 states and the District of Columbia. This includes the recent expansion of its surety business into Louisiana and Mississippi. Main Street America’s surety operations complement the company’s commercial and personal insurance business to provide a full line of protection products for individuals, families and businesses across the country. Main Street America’s surety bond offerings include: Contract surety bonds Commercial surety bonds ranging from small license and permit bonds and public official bonds to larger bonds covering service and supply obligations. Fidelity bonds, including a commercial crime policy that covers robbery, burglary and depositor’s forgery. Independent agents can order and process the company’s commercial bonds quickly and easily through its proprietary, state-of-the-art Main Street Station processing system. The system was designed for maximum ease of use, enabling Main Street America’s network of agents to write bonds at their desktops in just a few minutes. About The Main Street America Group With roots dating back to 1923, The Main Street America Group is a mutual insurance holding company which writes business through its nine property/casualty insurance carriers: NGM Insurance Company, Old Dominion Insurance Company, Austin Mutual Insurance Company, Grain Dealers Mutual Insurance Company, Main Street America Assurance Company, Great Lakes Casualty Insurance Company, MSA Insurance Company, Spring Valley Mutual […]

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Claims against a Payment Bond – It can be Tricky

Making a claim against a payment bond can be a tricky thing. As a contractor, you do not want to make the claim too early as the subcontractor may cry foul.  Also, the claim must be documented and you want to follow the steps to protect yourself. See more at the article below. See our WordPress page here. See our Facebook page here. http://www.natlawreview.com/article/making-claim-against-payment-bond-posted-general-contractor-or-sub-contractor Making a Claim against a Payment Bond Posted by a General Contractor or Sub-Contractor Monday, August 24, 2015 In construction projects that are performed either on behalf of a municipality or a state agency, a general contractor and potentially a sub-contractor are typically required to post payment and/or performance bonds with the county or municipality. A general contractor or sub-contractor is required to post a payment and/or performance bond, because this ensures that sub-contractors or suppliers are paid, and enables the Township or state agency to have the work completed should the contractor fail to do so in a timely fashion. As a supplier or sub-contractor on such a municipal or state project, it is important to know your rights with regard to making a claim against a payment bond. The most important thing that any sub-contractor or supplier must do prior to providing materials or services for a public contract is to provide the proper notice as required by N.J.S.A. 2A.44-145. This strict notice requirement specifies that the sub-contractor or supplier notify the party who posted the payment bond for the project in writing via certified mail of their intent to provide materials or services for the project. This is a prerequisite to being able to make a claim against the bond, or to receive a payment for materials and services with regard to the project if they are not paid by the sub-contractor or general contractor. As such, it is very important that any sub-contractor or supplier provide the appropriate notice to the party that posted the bond prior to performing any work or providing any materials. If proper notification has been sent and a sub-contractor or supplier did not receive payment for materials or services provided, they may make a claim against the bond posted by the general contractor or the sub-contractor. It is always suggested that a sub-contractor or supplier obtain a copy of the bond posted by the general contractor or sub-contractor before providing materials or services. This is to ensure that any claim against the bond is made in a timely manner and is not forfeited by failing to comply with the terms of the bond, which require that a claim be made within a certain specified period of time. Assuming that you have complied with the time requirements of the bond, a sub-contractor or supplier would first send a Notice of Demand for Payment to the bonding company with a copy to the contractor who posted the bond. Typically, the bonding company will require the production of any and all documents which justify the payment sought by the claimant that was not […]

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New Contractor for Edinburg

The city of Edinburg dropped its contractor and voted to allow performance bond provider Hanover Insurance Company to appoint a new contractor to finish the project. See more at the article below. See our Blogspot page here. See our Tumblr page here.   http://www.brownsvilleherald.com/news/valley/article_3965ee08-4a0c-11e5-975e-1f8332a24fc0.html Edinburg drops water plant contractor EDINBURG — The City Council voted unanimously Tuesday to terminate its agreement with a McAllen-based construction company responsible for the city’s $13 million water plant expansion on its west side. “We had already issued a stop work order and now this action terminates the contract by convenience,” said City Manager Ramiro Garza, referring to Texas Descon Construction LP’s contract. The city utilized a clause in that contract that allowed them to exit the agreement at will, he said. Council members also voted to allow the bond company Hanover Insurance Company to take over the financial aspect of the project and help appoint a new general contractor. LOST CONTRACTS Edinburg is the third entity in HidalgoCounty that’s publicly cut ties with the family-owned and operated construction company Texas Descon in the past few weeks. The City of San Juan recently accepted a letter of voluntary default and the Pharr-San Juan-Alamo school board also voted to terminate four renovation contracts. In CameronCounty, the City of La Feria’s safe dome projects were also awarded to Texas Descon. The same bond company that backed those projects took over the dome construction. La Feria city officials said Friday afternoon they did not vote to drop the contractor, nor have yet received a letter of default. Texas Descon’s owners and its attorneys did not respond to requests for comment on this story despite emails, calls and a visit to the company’s office. Across all the projects that total more than $92.2 million, each bond company has stepped in to take over and some have appointed new general contractors to finish the job within the budget. For the San Juan water plant, the job is only about halfway done, officials said. But in Edinburg the project had barely started, Garza said. While other entities complained of poor performance, Edinburg officials said they didn’t use that clause, instead evoked an option that doesn’t blame the company for anything. Texas Descon disclosed to San Juan officials that they had no experience building water plants but leaders awarded them the contract anyway. But Edinburg was also in need of an expansion, its two water plants were running at more than 90 percent capacity last year. The city also borrowed $10 million from the Texas Water Development Board for the project to increase its capacity from 8 million gallons per day to 16 million gallons each day. Last year, the city’s utilities department recommended that the council award the water plant expansion contract to New Braunfels-based R.P. Constructors Inc. because it was the lowest bid that satisfied the requirements. City staff reported to the council that Texas Descon didn’t submit all the paperwork initially and knocked down the ranking — but the firm […]

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Florida Medical Marijuana – Surety Bond update

In Florida, several companies have applied to be the state’s medical marijuana dispensing organization.  For these companies, a surety bond (which is a specialized type of bond) is required by statute. See more at the article below. See our Facebook page here. See our Twitter page here. The six nursery businesses that have applied to be Southwest Florida’s medical marijuana dispensing organization are turning to prominent professionals in the Sunshine State and cultivation experts from Colorado who have experience in the pot-growing industry. The state has been divided into five regions and only one license will be issued per region. Overall 28 applications were submitted from 24 nurseries. The six applicants for the region that includes Southwest Florida are based in LaBelle, Arcadia, Sarasota, Ruskin (two), and Homestead. Applications, including a $60,063 non-refundable fee, were submitted to the Florida Department of Health’s Office of Compassionate Use by the July 8 filing deadline. The selections are expected to be made by early October. The department has not finalized the selection committee panel members, according to an email Friday from Mara Burger, press secretary. To be eligible, nurseries had to operate for at least 30 years and have an inventory of 400,000 plants. The nurseries vying for the application for this region specialize in various crops, from palmettos to orchids to bromeliads. Applications will be scored on the following criteria: cultivation, 30 percent; processing, 30 percent; financials, 20 percent; dispensing, 15 percent; and medical director, 5 percent. Once licenses are awarded, nurseries have 60 days to begin cultivating their first cannabis crops and 150 more days to offer the medicine for sale. Gov. Rick Scott signed the Compassionate Medical Cannabis Act into law in 2014, but legal challenges caused delays. The new law allows dispensaries to grow marijuana that’s low in tetrahydrocannabinol, the chemical that provides a euphoric high, but high in cannabidiol, which can calm seizures. The drug, which can be prescribed to patients with intractable epilepsy and several other medical disabilities, will be made into an oil and taken orally. Jeffrey Sharkey, a lobbyist for the Medical Marijuana Business Association of Florida, called the law a “pioneering effort from legislators that’s conservative in nature.” Marijuana dispensary operations are expensive, he noted, with operating budgets in the millions and each nursery having to put up a $5 million performance bond. Sharkey said that Rep. Greg Steube, R-Sarasota, filed a proposal (HB 63) earlier this month to be considered during the 2016 legislative session that would overhaul the 2014 law. It addresses a range of issues, including expanding the number of people who qualify to receive medical marijuana and where it can be sold. “Most of those folks who will move forward are certainly anxious to see the regulatory framework expanded to include more medical conditions,” Sharkey said. Colorado sold nearly $700 million of marijuana in 2014, the first full year of recreational pot sales, according to data from the Colorado Department of Revenue. That’s $386 million for medical marijuana and $313 million […]

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Update on Medical Students need for Surety Bonds

Medical students and now going to be required to post a surety bond so that when they graduate, they won’t just run off and make money.  No, instead, they will go out and go a responsible, give back to the community job, for at least a year..  For these students, a surety bond (which is a specialized type of bond) is required by statute and guarantees that the students will give back to the community. See more at the article below. See our Facebook page here. See our Twitter page here. Surety Bonds – Medical students http://www.tribuneindia.com/news/chandigarh/education/only-15-student-leaders-turn-up-to-furnish-surety-bonds/122502.html Only 15 student leaders turn up to furnish surety bonds Ahead of the Panjab University Campus Student Council (PUCSC) elections, out of a total of 50 student leaders and members of student organisations affiliated to different student organisations identified by the UT Police only 15 appeared before the Sub-Divisional Magistrate (SDM), Central, to furnish surety bonds worth Rs 10,000 certifying that they will maintain peace during the elections. Bailable warrants have been issued against the remaining who failed to furnish the bonds. The Chandigarh Police had booked 50 student leaders and members of student organisations under Section 107/150 of the CrPC (preventive measure) on the suspicion that they can cause trouble during the elections. Those booked by the police were served notices and were asked to appear before SDM Prince Dhawan to furnish surety bonds. However, only 15 turned up to fill the bond. Officials said bailable warrants had been issued against those who failed to furnish the surety bonds. “The warrants will be served to all of them in the next few days,” the officials said. The student elections at the PU and affiliated city colleges will be held on August 26. 1 booked for defacement The Chandigarh police arrested a person for defacing the property by pasting the poster of a student organisation. According to the police, Shubham Sharma, a resident of Pipli Wala town, Mani Majra, was arrested from near a bus stop near Government College, Sector 11, while pasting the posters of the Student Organisation of India (SOI). A case under Section 3/4 of the Defacement of Property West Bengal Act-1976 has been registered against the accused at the Sector 11 police station on the complaint of Sub-Inspector Rambir Singh.

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Alabama – Fuel Tax Changes

There are new fuel tax bond requirements in Alabama for petroleum seller.  In October of 2016, there will be a change to the fuel tax bond that is required.  Remember, a fuel tax bond is a type of surety bond and is required by statute and guarantees that taxes will be paid to the state. See more at the article below. See our Delicious page here. See our Diigo page here. https://www.suretybonds.org/blog/alabama-new-fuel-tax-bond-requirement/ New Fuel Tax Bond Requirement For Alabama Petroleum Product Sellers Are you running a business as a petroleum products supplier in Alabama? Then it’s worth looking into a new piece of legislation coming into effect on October 1, 2016 that is going to affect your work. Bill SB 133, which has already been enacted, introduces a change to the fuel tax bond that is required for those who sell petroleum products for which there is an inspection fee charged. The fuel bond amount is increased and there are more types of suppliers now that are required to obtain it. Let’s walk you through the main changes that the SB 133 bill introduces and how they affect fuel suppliers in Alabama. What does the Alabama SB 133 bill change? As already mentioned, the new SB 133 bill increases the bonding amount required of petroleum products sellers in Alabama. It also changes the type of suppliers required to obtain one. On the state and county level, the new legislation transfers the task of collecting inspection fees on petroleum products from the Department of Agriculture to the Department of Revenue. It doesn’t change the distribution of the fees, so it’s not expected to alter the tax revenue of counties. There is a change in how the revenue is handled, though. Each county should collect it in its RRR Fund and use it according to the regulations of this fund. How does the bill affect gasoline and diesel suppliers? For sellers of petroleum products for which there is an inspection fee charged, the SB 133 bill revises the bond requirement. Previously, they had to supply a fuel tax bond between $2,500 and $5,000. With the new law, the requirement is set at $5,000. The bill also enlarges the scope of entities which are required to post such a surety bond. When it comes into effect in October 2016, the following gasoline suppliers will also have to get bonded: Suppliers or permissive suppliers of gasoline or undyed diesel which is sold to a licensed exempt entity other than the federal government by a supplier or permissive supplier at the rack; Supplier or permissive suppliers of dyed diesel fuel or dyed kerosene at the rack at an out-of-state terminal who are selling to an importer for delivery into Alabama that is not a bonded distributor and does not have a valid inspection fee permit; The first person selling, the person importing, or the bonded distributor of dyed diesel, dyed kerosene, or lubricating oil. In practical terms, this means that most sellers of petroleum products will have […]

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Surety bonds needed for students

Medical students and now going to be required to post a surety bond so that when they graduate, they won’t just run off and make money.  No, instead, they will go out and go a responsible, give back to the community job, for at least a year..  For these students, a surety bond (which is a specialized type of bond) is required by statute and guarantees that the students will give back to the community. See more at the article below. See our Facebook page here. See our Twitter page here. http://www.natlawreview.com/article/fiduciary-bonds-who-needs-them Surety Bonds – Medical students http://tribune.com.pk/story/937590/practice-or-pay-up-medical-students-to-submit-rs3-million-surety-bond/ Practice or Pay up: Medical student to submit surety bond Medical students will now have to furnish a surety bond for Rs3 million at the time of admission as an undertaking that they will serve in the primary healthcare sector for at least a year, Adviser to Chief Minister on Health Khawaja Salman Rafique said on Thursday. He said the chief minister had approved the new policy and it would it be implemented this year in public medical schools across the province. He said the idea was to strengthen the primary healthcare sector. “If a student violates the bond, they would have to pay Rs3 million to the government.” Rafique said the government spends at least Rs3 million on the education and training of a medical student over five years. “However, after they graduate, many MBBS students, women in particular, quit the profession.” He said because of that the exchequer suffered a heavy loss and the government remained unable to overcome the shortage of doctors in public hospitals. He said the annual fee for a student at a public medical college was Rs18,000. The new policy will ensure that no one abuses the privilege, he said. “The government is looking to overcome the problem of shortage of doctors and to provide the best possible health facilities to the poor…this policy will go a long way in ensuring that.”

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Who needs a fiduciary bond?

A fiduciary bond is needed by persons in certain circumstances, such as when you need one for a probate matter.  In these cases, a probate bond (which is a specialized type of fiduciary bond) is required by statute and guarantees that the probate administrator does not abscond with funds from the estate. See more at the article below. See our Blogspot page here. See our Tumblr page here. http://www.natlawreview.com/article/fiduciary-bonds-who-needs-them Fiduciary Bonds – Who Needs Them? As a fiduciary, you may be required, or may want, to obtain a fiduciary bond before you are permitted to serve as a fiduciary. Fiduciary bonds are also known as probate bonds, executor bonds, administrator bonds, conservatorship bonds, guardianship bonds, and many others, depending on the nature of the fiduciary relationship. What is a Fiduciary Bond? A fiduciary bond is a legal instrument that essentially serves as insurance to protect beneficiaries, heirs and creditors when a fiduciary fails to perform honestly or competently. A court may require a fiduciary bond for any person or party that has fiduciary duty or responsibility to another. In general, a fiduciary is someone who owes a duty of loyalty to protect the interest of another. A fiduciary may be a trustee, executor, personal representative, administrator, guardian, financial advisor, or other person exercising control over another person’s assets and/or property. The fiduciary bond imposes an obligation on the surety (typically the company issuing the bond or in some states, individuals agreeing to act as sureties) to pay to the court a certain amount in the event that the fiduciary breaches his/her duty. For instance, if the fiduciary commits fraud, theft or embezzlement of the trust or estate’s assets, a fiduciary bond could help limit the amount of damage to the trust or estate by requiring the surety to cover the amount of funds unlawfully taken. But such protection is not just limited to intentional acts committed by the fiduciary. It can also protect against a fiduciary who negligently or carelessly causes assets to be lost or depleted. Therefore, to ensure assets are protected, the bond amount is generally set at the amount of the non-real property assets under control of the fiduciary, but may be, and often is, set higher depending on state law. How Do I Know If A Fiduciary Bond Is Needed? State statutes determine when a bond is required. The most common situation is in probate actions. Some states require personal representatives or executors to post a bond in a probate action. This often occurs when a testator failed to include a waiver of the bond requirements in his Will, or the decedent dies intestate. Other states give the court discretion whether to impose a bond, even if the Will specifically waives the bond requirement. Sometimes, fiduciary bonds may be requested by beneficiaries or creditors who are concerned about the loyalty or financial status of a fiduciary. Rather than seeking to have such fiduciary removed, the beneficiary or creditor may request the court impose a bond to […]

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Why surety bonds are needed

n the construction industry, surety bonds are required by a variety of entities for a variety of reasons.  In addition, many other sectors of the economy require a surety bond just to operate their business.  These bonds, called license and permit bonds, are used to make sure that the regulated entity pays their respective taxes, fines, etc. Below is a great example of why surety bonds should be used.  In this case, the charter schools did not have to have a bond, which is now causing massive problems for the other schools.  A surety bond would have eliminated this risk to the school district. http://www.sun-sentinel.com/local/broward/fl-broward-charter-money-20150814-story.html Broward County schools may have to repay $1.8 million owed by two closed charter schools. Obama Academy for Boys and Red Shoe Charter for Girls, both in Fort Lauderdale, agreed to close after frequent disputes with the district. But a recent State Auditor General report found the jointly owned schools could not verify their enrollments for the 2013-14 school year and therefore the state is owed $729,000. The district expects to be on the hook for another $1.1 million because the school also failed to keep proper enrollment records this past school year, said Patrick Reilly, chief auditor for Broward schools. The state will likely withhold that money from future district allocations, even though the charter schools have closed. “School districts are accountable for monitoring their charter schools. Therefore, any audit finding affecting a charter school is ultimately the responsibility of the sponsoring school district,” said Claudia Claussen, a spokeswoman for the state Department of Education. She wouldn’t comment on the actual amount that could be withheld, saying department officials haven’t seen the audit yet. “There’s no way to recover anything from the schools,” Superintendent Robert Runcie said. “The district is liable for their shortfall. It’s going to impact students in the district who will no longer have those funds available to meet their needs.” Angry School Board members pledged to lobby to change state laws so charter schools would be required to have surety bonds or other financial means to ensure taxpayers aren’t responsible for school debts. “We’re paying for their fines, and that’s wrong,” Board member Robin Bartleman said. “They need to put something in place where the schools are personally liable for their own fines. They don’t govern appropriately, they waste money and now the state is withholding money from us? It’s deplorable.” Charter schools receive public dollars but are independently operated and governed by a volunteer board. A Sun Sentinel investigation last year found state laws not only make it easy to open a charter school but difficult to hold them accountable. Local districts can only immediately close charter schools when they threaten a student’s health or welfare. The district closed the two schools after three years of financial and academic problems, violations of state law and breaches of contract with the district, records show. District officials say the schools failed to give student report cards, did not disclose how they […]

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Breach of contract – Surety Bond troubles

Contractual relationships rule the day. That’s the real lesson in performance surety work.  It’s all about how the contracts are worded and whether the parties adhere to the contracts.  In the article below, the contractor was unhappy with the water board because they did not extend the time limit, per the terms of the contract. See our Delicious page here. See our Tumblr page here. http://louisianarecord.com/stories/510632496-sewerage-and-water-board-sued-by-construction-company-for-alleged-1-million-plus-breach-of-contract Sewerage and Water Board sued by construction company for alleged $1 million-plus breach of contract A construction company is suing the Sewerage & Water Board for breaching contract in several ways and failing to pay the proper amount for work completed. W.L Wyman Construction Company, Inc. filed suit against Sewerage & Water Board of New Orleans in the Orleans Parish First Civil District Court on June 19. The plaintiff claims that it entered into a contract with the defendant for the original sum of $1,035,164, in which it agreed to furnish all necessary labor, equipment and materials, except those materials to be furnished by S&WB to demolish and replace the Central Yard Annex building. The contract required the work to be completed 180 days after the issuance of the required work order, but according to to the plaintiff also contained a subsection that allowed for the increase in the time of completion due to suspension, delay or interruption of the work for causes outside the fault or negligence of Wyman. The plaintiff claims to have been notified of a “Phase Two Work Order” that would start the clock on the job which would not be issued until phase one work order requiring a pile test was fulfilled. The plaintiff claims that the defendant issued a phase two work order more than a month before phase one had been completed and before the city had even issued a building permit. This was agreed to on March 7, 2012. Despite several events necessitating extensions in the project timetable that were not due to the plaintiff, the defendant is accused of wrongly putting the final acceptance of the work “on hold”, and breaching the contract by failing to extend the completion date of the work on “bogus” grounds of it being substantially completed on that date. The plaintiff additionally accuses the defendant of failing and refusing to pay Wyman reasonable compensation for S&WB-caused delays totaling 584 days, and failing and refusing to issue the final acceptance of the work in conformity of the contract, among other things. The plaintiff is seeking an unspecified amount in damages for all equipment, material, and labor costs incurred by the plaintiff and any and all overhead and profit payable to Wyman, on account of any and all deals in the completion of the work attributable to the S&WB. any costs related to the S&WB\’s failure to issue a final acceptance of the work, any and all amounts attributable to any retainage which should have been timely paid, any and all damages suffered by the plaintiff as a result of the delay in the […]

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