CONTETNS I.Introduction, 3 II.Delivery Systems for Transit Construction Projects, 4 III.Purpose, Historical Underpinnings, and Legislative Framework of Surety Bonds, 12 IV.Alternative Forms of Performance Security, 20 V.Pursuing Remedies Against a Surety, 30 VI.Commercial Issues Affecting the Surety Relationship on Large, Complex Projects, 35 VII.Current Practices and Perspectives of Transit Agencies, 42 VIII.The Surety Perspective on Bonding Transportation Megaprojects, 49 IX.Case Study:The Use of Surety Bonds on Large and Innovatively Delivered Projects, 55 X.Case Study: Modern Continental-Mitigating a Failure, 63 XI.Case Study: The Brazilian Oil Platform Case- An Example of Surety Exposure When a Large Project Goes Bad, 67 XII.A Game Plan for Dealing with Surety Issues on Complicated Projects, 73 XIII.Summary, 76 References, 78 Appendix A: Fifty State Legislative Bonding Requirements, 83 Appendix B: List of Transit Agencies Responding to the Survey, 95 Appendix C: Survey on Surety Bonding to Transit Agencies, 96