Many state and federal laws require project sponsors to obtain performance bonds at levels that exceed what would be required by private investors. Such state and federal laws disregard the availability of other forms of security. An owner-controlled insurance policy was used successfully on the I-15 Reconstruction Project by UDOT to significantly reduce insurance costs for all contractors. A statutory revision was passed by the Missouri General Assembly236 to enable bidders to obtain commercially feasible performance bonds for the Missouri DOT's design-build-finance-maintain contract to repair/replace 800 of the state's worst bridges within 5 years and to maintain them in good condition for 25 years.237
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236 Mo. Rev. Stat. 227.107 (TAFP H.B. 2, 1st Extraordinary Session 2007).
237 See http://www.modot.org (click on Safe & Sound MoDOT project icon).