Commonwealth’s Construction Self Bonding Risk Management Program
For construction projects less than $500,000 agencies have the option of not requiring the contractor to provide bid, performance, and payment bonds. For construction contracts in excess of $100,000 but less than $500,000 where the bid bond requirements are waived, contractors shall be prequalified for each individual project.
The Department of Treasury Division of Risk Management is administering a Self Bonding Program for construction projects less than $500,000 when commercial bonds have been waived by the agency. Contractors must be qualified in accordance with the Self Bonding Program in order for performance and payment bonds to be issued. Contractor prequalification is the first step in qualifying for the program.
Agencies are strongly encouraged to use this program rather than completely waive bonding for projects from $100,000 to $500,000 to support the Governor’s initiatives and to avoid possible increased costs from subcontractors on un‐bonded projects.
Agencies can use the DGS Pre-Qualified SWaM Contractors List to help facilitate the prequalification process.
For questions related to the Division of Risk Management email DRMadmin@trs.virginia.gov and for questions related to the Division of Engineering ang Buildings email DEBinfo@dgs.virginia.gov.
DEB Notice 110811 regarding the Self Bonding Program
Self Bonding Program Process & Instructions (2/15/2012)
Presentation on the Self Bonding Program (11/15/2011)
CO-16-Attachment Two, Additional Financial and Insurance Requirements for Self-Bonding Program