Kenneth Block | Tannenbaum Helpern Syracuse & Hirschtritt When an owner requires a contractor to post a payment and performance bond, the contractor, invariably, provides a bond in the form of AIA Document A312-2010. The payment portion of the bond is primarily for the benefit of the contractor’s subcontractors and allows the subcontractors to make… Continue reading Pitfalls of the AIA Form of Performance Bond
Tag: Performance Bond
Construction Litigation Roundup: “Tender Is the Fight”
Daniel Lund III | Phelps Dunbar A performance bond surety for a defaulted general contractor principal found itself with a recalcitrant owner which refused to accept the tender of a replacement general contractor to complete a $3,000,000 construction project in Monmouth County, New Jersey. Even before the original GC was off the job, the surety… Continue reading Construction Litigation Roundup: “Tender Is the Fight”
Surety’s Several Liability Under Bonds
David Adelstein | Florida Construction Legal Updates When a payment or performance bond is issued on behalf of its bond-principal, the surety is jointly and severally liable with its bond-principal. This means the surety has several liability under the bond, i.e., you don’t need to pursue the principal of the bond to pursue liability under the bond, which is a separate written… Continue reading Surety’s Several Liability Under Bonds
Construction Litigation Roundup: “Tender Is the Fight”
Daniel Lund III | Phelps Dunbar A performance bond surety for a defaulted general contractor principal found itself with a recalcitrant owner which refused to accept the tender of a replacement general contractor to complete a $3,000,000 construction project in Monmouth County, New Jersey. Even before the original GC was off the job, the surety… Continue reading Construction Litigation Roundup: “Tender Is the Fight”
Rhode Island Affirms The Principle That Sureties Must be Provided Notice of Default Before They Can be Held Liable for Principal’s Default
Dennis Cavanaugh and Tasnuva Islam | Construction Law Zone Most bond forms in use today, including the standard form AIA A312-2010, contain express condition precedents that trigger a surety’s obligations under the bond. Under a performance bond, the bond obligee is required to provide formal notice to the surety that the principal has materially defaulted… Continue reading Rhode Island Affirms The Principle That Sureties Must be Provided Notice of Default Before They Can be Held Liable for Principal’s Default