[Congressional Record (Bound Edition), Volume 145 (1999), Part 14]
[House]
[Page 19744]
[From the U.S. Government Publishing Office, www.gpo.gov]



          CONSTRUCTION INDUSTRY PAYMENT PROTECTION ACT OF 1999

                                 ______
                                 

                               speech of

                             HON. PAUL RYAN

                              of wisconsin

                    in the house of representatives

                         Monday, August 2, 1999

  Mr. RYAN of Wisconsin. Mr. Speaker, I rise today in support of the 
Construction Contractors Payment Protection Act of 1999, H.R. 1219. 
This legislation has been carefully crafted to balance the rights and 
interests of the parties on projects covered by the Miller Act. The 
Miller Act requires a performance bond to protect the government for 
completion of the project and payment bonds to protect certain persons 
providing labor and materials since these persons are not afforded the 
protection of mechanics liens on federal projects. Legislation 
previously proposed did not adequately balance these considerations. I 
am pleased that twenty-three construction industry groups including the 
Associated General Contractors of America, the Surety Association of 
America, American Insurance Association and National Association of 
Surety Bond Producers were able to agree upon provisions enhancing the 
current Miller Act.
  Bonding is a very important benchmark in the construction industry. 
This bill preserves that benchmark. Bond capacity represents a 
company's financial and capacity to complete a project. Bonded 
contractors expose their companies to rigorous financial and 
operational evaluation and their officers often pledge corporate and 
personal financial assets as collateral to the bond.
  The Miller Act was designed to protect subcontractors and the 
government to ensure the timely completion of a construction project. 
Government contractors have proven to be very reliable. Hundreds of 
thousands of contracts are entered into annually. The government 
purchases billions of dollars of construction services.
  I commend the gentleman from Virginia, Representative Davis and the 
gentlelady from New York, Representative Maloney, and the Chairman of 
the subcommittee, Representative Horn for their extraordinary efforts 
to reach a consensus agreement by so many in the construction industry.

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