BOND AND INSURANCE COVERAGES FOR HIGHWAY CONSTRUCTION CONTRACTORS

This report documents and presents the results of a study to investigate the factors impacting bond and insurance availability and cost for highway construction contractors. Input was received from participants in the highway industry through two surveys, personal interviews, and through literature review. Surety bonds and traditional insurance coverages will continue to be required of highway contractors performing government projects. Contractors with stable financial situations and good performance records will continue to find such requirements of no significant problem. An exception to this will be the difficulty in obtaining coverage for hazardous waste projects. Small and minority contractors will continue to have a difficult time obtaining traditional surety bonds, with lesser difficulty with insurance as long as they have good performance and safety records. There are several options for minority contractors to seek government assistance for bonding. Seventeen recommendations were developed for possible implementation to alleviate current bond and insurance problem situations, nine for bonds and eight for insurance. Eleven specific research problem statements were developed, including scope, estimated cost and duration. Six problem statements were identified in the bond area and five in the insurance area.

• Record URL:
  http://onlinepubs.trb.org/Onlinepubs/nchrp/nchrp_rpt_341.pdf
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/0309048648
• Supplemental Notes:
  • Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Hancher, D E
  • Burke, D
  • Goff, Z
• Publication Date: 1991-7

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: 53 p.
• Serial:
  • NCHRP Report
  • Issue Number: 341
  • Publisher: Transportation Research Board
  • ISSN: 0077-5614

Subject/Index Terms

• TRT Terms: Bonds; Contractors; Costs; Data collection; Guides to the literature; Hazardous materials; Insurance; Interviewing; Literature reviews; Minority business enterprises; Recommendations; Research; Road construction; Small business; Supply; Surety bonds; Surveys
• Uncontrolled Terms: Availability
• Subject Areas: Administration and Management; Construction; Finance; Highways; Law; Research; I10: Economics and Administration;

Filing Info

• Accession Number: 00611091
• Record Type: Publication
• ISBN: 0-309-04864-8
• Files: TRIS, TRB, ATRI
• Created Date: Jul 31 1991 12:00AM