Common use of Surety Letters Clause in Contracts

Surety Letters. Provide a letter from a surety or an insurance company indicating that Proposer or Lead Contractor is capable of obtaining for the Project a Performance Bond and a Payment Bond each in an amount of at least $100 million. This evidence shall take the form of a letter from a surety/insurance company indicating that such capacity exists for Proposer or Lead Contractor (as applicable). Letters indicating “unlimited” bonding capability are not acceptable. The surety/insurance company providing such letter must be rated in one of the two top categories by two nationally recognized rating agencies, or “A minus” or better and “Class VIII” or better by “A.M. Best Company,” and must indicate the relevant rating in the letter. The letter must specifically state that the surety/insurance company is an admitted surety or insurer (approved by the Arizona Department of Insurance), and has read this RFQ and evaluated Proposer’s backlog and work-in-progress in determining its bonding capacity. In instances where the response to Section 5.2 contains descriptions of proposed or anticipated changes in the financial condition of Proposer, or any other entity for which financial information is submitted as required hereby for the next reporting period, the surety/insurance company must certify that its analysis specifically incorporates a review of the factors surrounding such changes and identifying any special conditions that may be imposed before issuance of surety bonds for the Project. If a Proposer or Lead Contractor, as applicable, is a joint venture, partnership, limited liability company or other association, separate letters for one or more of the individual Equity Members of Proposer or joint venturer, partner or member of the Lead Contractor, as applicable, are acceptable, as is a single letter covering all Equity Members, joint venturers, partners or members; provided, however, that each separate letter provided must reference the specific portion of the $100 million amount that the surety is indicating it is willing to provide. Statements such as “the entity’s share of the work/bond amount” or the like are not acceptable. Notwithstanding the foregoing, details concerning the amount of required bonds and other performance security requirements shall be set forth in the RFP.

Surety Letters. Provide a letter from a surety or an insurance company indicating evidencing that Proposer Respondent or Lead Contractor is capable of obtaining for the Project a Performance Bond performance bond and a Payment Bond payment bond each in an amount of at least $100 150 million. This evidence shall take the form of a letter from a surety/insurance company indicating that such capacity exists for Proposer Respondent or Lead Contractor (as applicable). Letters indicating “unlimited” bonding capability are not acceptable. The surety/insurance company providing such letter must be rated in one of the two top categories by two nationally recognized rating agencies, or “A minus” or better and “Class VIII” or better by “A.M. Best Company,” , Inc. and must indicate specify the relevant rating in the letter. The letter must specifically state that the surety/insurance company is an admitted surety or insurer (approved by the Arizona Department of Insurance), and has read this RFQ and evaluated ProposerRespondent’s or Lead Contractor’s, as applicable, backlog and work-in-progress in determining its bonding capacity. In instances where the response to Section 5.2 contains descriptions of proposed or anticipated changes in the financial condition of ProposerRespondent, or any other entity for which financial information is submitted as required hereby for the next reporting periodsubmitted, the surety/insurance company must certify that its analysis specifically incorporates a review of the factors surrounding pertinent to such changes and identifying any special conditions that may be imposed before issuance of surety bonds for the Project. If a Proposer Respondent or Lead Contractor, as applicable, is a consortium, partnership or any form of joint venture, partnership, limited liability company or other association, separate letters for one or more of the individual Equity Members of Proposer Respondent or joint venturerventure member, partner or member of the Lead Contractor, as applicable, are acceptable, as is a single letter covering all Equity Members, joint venturers, partners or members; provided, however, that each separate letter provided must reference the specific portion of the $100 million amount that the surety is indicating it is willing to provide. Statements such as “the entity’s share of the work/bond amount” or the like are not acceptable. Notwithstanding the foregoing, Further details concerning the amount of required bonds and other performance security requirements shall be set forth in the RFP.