Any contractors who will perform construction on the 532-mile Pennsylvania Turnpike must post a surety bond to fulfill legal requirements as outlined by the Turnpike Commission.
How much does a Pennsylvania Turnpike Commission bond cost?
All contractors performing construction work must post a surety bond in an amount determined by the Commission, ranging from $5,000 to $20,000. All Pennsylvania Turnpike surety bonds can be issued at a rate of $20 per every $1,000 of the bond amount. This means that a $5,000 bond issued at this rate would cost $100.
Information on your surety bond requirements for the Pennsylvania Turnpike can be found on the Supplemental Trust Indenture NO. 42.
If your project requires materials to be shipped to the job site, a freight broker bond may also be required.
What is the required surety bond amount?
Upon being awarded a contract to work on a Pennsylvania Turnpike project, contractors must post separate performance and payment bonds that are each worth 100% of the contract price. The previous rule had only required the executing surety provider to be legally authorized to transact business in the State and satisfactory to the Secretary.
The new revision, however, also requires a contractor’s surety provider to
have an A.M. Best financial strength rating of at least A-.
be classified as a financial size category of IX or greater.
SuretyBonds.com fits all PA Turnpike requirements of providing surety bonds for turnpike projects.
The Commission combines these minimum requirements to verify that a surety provider has sufficient financial capacity to provide the necessary policy limits to insure the risks associated with contract bonds. This means that the Commission will only accept surety bonds from underwriters who have a financial strength ranking of at least A- and an adjusted PHS of at least $250 million.
Issues and comments regarding the revised surety requirements can be forwarded to Leonard Bellanca in the APC office.