FOR IMMEDIATE RELEASE

ALEXANDRIA, VA and BETHESDA, MD (January 16, 2024) – The American Subcontractors Association (ASA) and the National Association of Surety Bond Producers (NASBP) announced today an enhanced strategic alliance to strengthen mutual efforts supporting equitable risk environments for the benefit of construction projects and parties. 

The formal agreement between the longtime collaborators furthers a working relationship to amplify each organization’s capabilities on surety and risk management initiatives and on advancing legislative and regulatory policies beneficial to subcontractor interests, including their access to bonding. Bonding is critical to subcontractors, as bonding facilitates greater opportunities for them to bid and win public work, invest in their operations, create and preserve jobs, and contribute to the overall growth of construction and the U.S. economy.

ASA protects U.S. taxpayers, subcontractors, small businesses, and workers by supporting policies for the common use of payment and performance bond protections in infrastructure projects where federal funds are being used. Surety bond protections have played a vital role in ensuring the delivery of our nation’s infrastructure. 

Since the passage of the Miller Act in 1935, and subsequent state “Little Miller Acts,” payment and performance bonds have been common requirements for public works projects. Surety bonds ensure that publicly funded construction contracts are undertaken by qualified companies, that such contracts are completed on time, and that subcontractors and workers on those projects receive payment. 

Currently, more than 95 percent of all public projects require bonding. However, the advent, and increased use, of creative financing measures, such as public-private partnerships (P3s), has in some instances, created ambiguity on the application of existing bonding requirements to new circumstances. 

Potential coverage gaps leave workers, subcontractors, suppliers, small businesses, and taxpayers exposed to unnecessary and unwarranted performance risks. This strategic alliance will continue to work "hand in glove" to make sure that these vital protections apply when taxpayer-supported construction and infrastructure projects are undertaken.

“This alliance brings together complementary capabilities,” said ASA Chief Executive Officer Richard Bright. “Subcontractors perform the actual construction work and surety bond producers convey the bonding advice and support that makes construction possible. Our organizations share common interests and goals, and we look forward to enhancing our already productive relationship.” 

With the alliance in place, ASA and NASBP will coordinate advocacy campaigns and initiatives, share industry research and analysis, provide educational programs and resources, and otherwise collaborate to expand subcontractor access to bonding.

“There is tremendous, untapped opportunity for surety bond producers and subcontractors to work together to keep construction projects moving forward,” said NASBP Chief Executive Officer Mark McCallum. “This alliance formalizes our longstanding, informal relationship and ensures our organizations have an integrated strategy for driving growth while mitigating risk across the interconnected construction market. NASBP values its relationship with ASA and looks forward to realizing the potential of this strategic alliance for the mutual benefit of our respective members.”  

About American Subcontractors Association 
The American Subcontractors Association (ASA) amplifies the voice of and leads trade contractors to improve the business environment for the construction industry and the U.S. economy. Founded in 1966, ASA advances the interests of construction trade subcontractors through advocacy, leadership, and member engagement. To learn more, visit https://www.asaonline.com/.

About National Association of Surety Bond Producers
Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. NASBP's mission is to strengthen professionalism, expertise, and innovation in surety and to advocate its use worldwide. Learn more at https://www.nasbp.org/home.

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Media Contacts: 

For ASA: Michael Kline, 412-551-6228

For NASBP: Kathy Hoffman, 240-200-1278