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HD 2165

An Act relative to default insurance programs for certain public construction projects

194th Legislature (2025-2026) Introduced by Dan Cahill

Massachusetts bill establishes default insurance requirements for public construction contractors to protect taxpayers from project non-completion and financial losses.

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Bill Summary · HD 2165

Legislative bill overview

HD 2165 establishes or modifies default insurance programs for public construction projects in Massachusetts. The bill allows public entities to require contractors to obtain insurance coverage that protects against contractor default or non-performance. This shifts financial risk from public agencies to private insurance carriers and contractors.

Why is this important

Public construction projects often represent significant taxpayer investments. Default insurance protects municipalities and state agencies from costly project delays, cost overruns, or abandonment if a contractor fails to complete work. This mechanism can reduce exposure to fraud, insolvency, or poor performance while potentially improving project completion rates.

Potential points of contention

  • Cost burden on contractors: Requiring default insurance increases project costs, which may be passed to taxpayers or reduce contractor profit margins, potentially limiting competition from smaller firms
  • Insurance market availability: Not all contractors or project types may easily obtain default insurance, creating barriers to bidding and potentially excluding qualified contractors from public work
  • Scope and mandate clarity: The bill's specific requirements regarding which projects mandate insurance, coverage amounts, and exemptions are critical details that could significantly affect implementation and fairness across public entities

Compiled from official sources — confirm details with the bill’s official record.

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