The surety industry once again saves the taxpayer. Replacement of the Herbert G. “Buddy” Phillips Bridge in North Carolina could have come to a screeching halt if surety bonds were not required on this public works job. The contractor on the project filed for Chapter 11 in N.C. Eastern Bankruptcy Court on Aug. 29.
Because performance and payment bonds are required on public works projects, the tax payers will not have to pay to have a replacement contractor complete the project. The company that provided the surety bonds has already been called in and is working with the N.C. DOT to get the project completed, at no additional cost to the tax payer.