C. Andrew Gibson | Stoel Rives With construction teams navigating the effects of the COVID-19 pandemic and the world’s material supply chains, securing project performance has perhaps never been at such a premium. If a contractor cannot timely perform, or if a subcontractor simply pulls out of a new project bid in order to pursue… Continue reading Surety Bonds vs. Subcontractor Default Insurance
Tag: Subcontractor Default Insurance
The Basics of Subcontractor Defaults – Key Considerations
Gerard J. Onorata | Peckar & Abramson The success of general contractors in completing a construction project is often dependent upon the performance of their subcontractors. General contractors have frequently said exactly this. Traditionally, the key subcontractors on a project are the electrical, plumbing, HVAC and structural steel subs. Due to the fundamental nature of… Continue reading The Basics of Subcontractor Defaults – Key Considerations
Will Subcontractor Default Insurance Still Have Value in the Recovering Economy?
Nicole Lentini and Rebecca Clawson Juhl | Construction Law Blog The COVID-19 pandemic has burdened subcontractors with workforce shortages, supply chain issues, and financial difficulties. Therefore, as states lift their stay-at-home orders issued to limit the spread of COVID-19 and construction projects resume, subcontractors’ ability to complete demanding, time-sensitive projects might be impacted. Subcontractor default… Continue reading Will Subcontractor Default Insurance Still Have Value in the Recovering Economy?
COVID-19 Impacts on Subcontractor Default Insurance and Ripple Effects
Daniel McLennon | Smith Currie & Hancock Subcontractor default insurance (“SDI”) may be described as an alternative to bonding subcontractors. SDI is first-party insurance that compensates the general contractor insured in the event a covered subcontractor fails to fulfill its contractual obligations. Under SDI policies, general contractor insureds are obligated to develop and implement rigorous… Continue reading COVID-19 Impacts on Subcontractor Default Insurance and Ripple Effects
Techniques to Maximize SDI Coverage and Streamline the Claim Process
Christopher Barbarisi | Construction Executive | February 21, 2017 Design-builders, general contractors and “at risk” construction managers are all vulnerable to the risk of a subcontractor default. Aside from contract-related safeguards, such as increased retention, joint checks and letters of credit, subcontractor surety bonds have been the traditional mechanism for third-party risk transfer. First introduced in the mid-1990s, subcontractor default… Continue reading Techniques to Maximize SDI Coverage and Streamline the Claim Process