Princeton, N. J. — The Construction Financial Management Association (CFMA) announced that its Executive
Committee voted unanimously on June 25 to support H.R. 3534 the “Security in Bonding Act of 2012.”
The “Security in Bonding Act of 2012” bolsters the integrity of the federal bonding process by making certain
that the assets supporting non‐corporate surety bonds are sufficient and in the care and custody of
knowledgeable authorities. Parties relying on the protection of surety bonds, such as the many small
businesses that perform as subcontractors and suppliers on federal construction projects, will have confidencethat the assets backing their payment protections are real, not illusory.
Stuart Binstock, President & CEO of CFMA said, “The Security in Bonding Act of 2012 is an important piece of
legislation that protects our members’ companies requiring bonding on federal construction projects.”
The Security in Bonding Act provides much needed repairs to a procurement system that can permit
gamesmanship and the acceptance of individual surety bonds pledged with deficient assets, often to the
detriment of small businesses. CFMA supports this legislation as do thirteen other construction industry
organizations, including the American Subcontractors Association, the Associated General Contractors of
America, the Mechanical Contractors Association of America, the National Electrical Contractors Association,
the Women Construction Owners and Executives, and the Veterans Entrepreneurship Task Force, among
others.
Said Binstock, “In today’s tough economic climate, our members are seeking honest, fair transactions when
seeking federal projects.” BInstock continued, “CFMA represents the financial managers working in many
general and subcontractors, many of whom would benefit from this legislation when bidding on federal
projects.”
The Construction Financial Management Association is the only non‐profit individual member organization in the world dedicated to serving the financial professional in the construction industry. Established in 1981, it serves more than 6,500 members in 88 chapters across the United States and Canada, publishes an award‐winning business journal, CFMA Building Profits, and offers a variety of educational and professional development and connection programs through its chapter network, at its Annual Conference & Exhibition,
and distance learning via the Internet. Membership in CFMA provides construction financial professionals with unique opportunities for industry networking, career development, and personal and professional growth.
