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HOUSE DOCKET, NO. 1655 FILED ON: 1/18/2023
HOUSE . . . . . . . . . . . . . . . No. 3000
The Commonwealth of Massachusetts
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PRESENTED BY:
Daniel Cahill
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to default insurance programs for certain public construction projects.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel Cahill10th Essex1/18/2023 1 of 2
HOUSE DOCKET, NO. 1655 FILED ON: 1/18/2023
HOUSE . . . . . . . . . . . . . . . No. 3000
By Representative Cahill of Lynn, a petition (accompanied by bill, House, No. 3000) of Daniel
Cahill relative to default insurance programs for certain public construction projects. State
Administration and Regulatory Oversight.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to default insurance programs for certain public construction projects.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 Section 1. Section 8 (a) of Chapter 149A of the General Laws as appearing in the 2018
2Official Edition is hereby amended by striking out paragraph 2 and inserting in place thereof the
3following new paragraph:-
4 All trade contracts entered into in accordance with this chapter shall be secured by
5performance and payment bonds in the full amount of the trade contract from a surety company
6licensed to do business in the commonwealth and whose name appears on United States Treasury
7Department Circular 570; provided that the bonds are subject to subsection (3) of section 44F of
8chapter 149 except for those subcontracts subject to a subcontractor default insurance policy
9obtained by the construction management at risk firm. The construction manager at risk firm to
10obtain a subcontractor default insurance policy in lieu of the requirement that all trade
11contractors obtain payment and performance bonds. The intention to use a subcontractor default 2 of 2
12insurance policy shall be made known by the awarding authority and construction manager at
13risk firm prior to the receipt of trade contractor bids pursuant to subsection (g) of this section.