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Published: 1990

Total Pages: 0

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The EPA and the U.S. Army Corps of Engineers (Corps) have experienced difficulties in contracting Hazardous and Toxic Waste (HTW) cleanup projects. The HTW cleanup industry has expressed concern that it could not obtain surety bonds required as prerequisite for competing for remedial action construction projects. It was reported that Treasury Department listed corporate sureties, which provide the guarantee bonds for Government projects, had imposed stringent limitations on the provision of performance bonds which assure the government that the cleanup project will be completed. Essentially, the bonds guarantee that the surety will either complete performance or pay the Government its costs associated with completing the project to the limit of the penal amount of the bond. Various contracting industry firms stated that they have not been able to secure bonding for some projects. Those that have obtained bonds had a difficult time doing, so and some firms that had obtained bonds for previous projects were unable to obtain bonds for a subsequent project. The surety industry indicated its reluctance to guarantee performance on HTW projects primarily because of its concern for possible long-term liability exposure and changing state-of-the-art design requirements associated with such actions.