SECURITY REQUIREMENTS IN RELATION TO TENDERING PRACTICES

A SURVEY OF THE SECURITY REQUIREMENTS OF THE VARIOUS GOVERNMENTS IN CANADA CONCERNED WITH ROAD AND HIGHWAY CONSTRUCTION SHOWS A VARIATION WHICH MAY RESULT FROM A LACK OF APPRECIATION OF THE SAFE-GUARDS THAT ARE AVAILABLE. THIS STUDY UNDERTAKES TO EXAMINE THE VALUE OF SURETY AND ITS ALTERNATIVES TOGETHER WITH THE COMPLEMENTARY FUNCTION OF PREQUALIFICATION. THE HISTORICAL BACKGROUND OF CORPORATE SURETY LEADS INTO A STUDY OF THE FUNCTIONS OF THE VARIOUS CONTRACT BONDS IN USE, AND THEIR FORMS, WITH PARTICULAR REFERENCE TO THE NEED FOR UNIFORMITY OF LEGISLATION IN CONNECTION WITH THE USE OF LABOR AND MATERIALS PAYMENT BONDS THE DIFFICULTIES AND DISADVANTAGES INHERENT IN THE ACCEPTANCE OF SECURITY DEPOSITS IN LIEU OF SURETY BONDS IS DEALT WITH FROM BOTH THE GOVERNMENT AND CONTRACTOR POINTS OF VIEW. THE VALUE OF CORPORATE SURETYSHIP TO OWNERS AND GOVERNMENTS AS WELL AS CONTRACTORS AND THE CONSTRUCTION INDUSTRY IS PRESENTED IN THE HOPE THAT AN UNDERSTANDING OF THE SECURITY IT LENDS TO ALL CONCERNED WILL LEAD TO GREATER UNIFORMITY IN ITS USE. THE MECHANICS OF UNDERWRITING THE CONTRACTOR, TOGETHER WITH THE FACTORS THAT GO INTO HIS ASSESSMENT FOR SURETY PURPOSES, ARE SET OUT WITH SPECIAL EMPHASIS ON THE PART THAT OTHERS PLAY IN HIS GROWTH AND DEVELOPMENT. PREQUALIFICATION IS REGARDED AS BEING COMPLEMENTARY TO CORPORATE SURETYSHIP WITH BOTH SETTING OUT TO ATTAIN THE SAME DESIRABLE OBJECTIVE. NEITHER WILL ACHIEVE ITS POTENTIAL IF ONE METHOD IS SUPPORTED AND USED AT THE EXPENSE OF THE OTHER.

  • Supplemental Notes:
    • P323, 20pp, 5FIG, 1TAB, 4REF
  • Authors:
    • Hilborn, R H
  • Publication Date: 1964

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  • Accession Number: 00200922
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 24 1994 12:00AM