Robert Meade, Alistair Calvert and Tom Swarbrick | Bracewell Performance bonds are intended to guarantee a contractor’s satisfactory and timely completion of a project. There is no need for the employer to establish or prove that the contractor has defaulted on its obligations prior to making the call. For that reason, enforcing a performance bond… Continue reading Performance Bonds – Call Me?
Tag: Performance Bond
Don’t Pay for Your Performance Bond More than Once
Bill Wilson | Construction Law Zone An often-overlooked part of contract negotiations is the language included in the performance bond. While the owner or contractor (bond obligee) requires a performance bond and pays for it, negotiating efforts are typically spent on the main contract language itself rather than the bond. A common go-to performance bond… Continue reading Don’t Pay for Your Performance Bond More than Once
Ways to Guard Against Insolvency Risks
Colm Nelson | Stoel Rives Headlines such as “US set for recession next year, economists predict,” from the June 12 edition of the Financial Times, are a reminder insolvency risks are real and should be top of mind when moving forward with new construction projects. But there are ways to mitigate the risks. Performance bonds, as… Continue reading Ways to Guard Against Insolvency Risks
Performance Bond Primer: Need to Knows and Need to Dos
Rafael Boza | Gravel2Gavel If you are a construction contractor, you deal with performance bonds as part of your business and daily work. They are necessary for almost every project you are participating or will participate in, and, along with other sister bonds, constitute a basic tool to be able to work in construction. However,… Continue reading Performance Bond Primer: Need to Knows and Need to Dos
Obtaining the Benefits of a Performance Bond: Tread Carefully
Choity Khan | Construction Law Zone When a party to a construction contract is faced with nonperformance of another party, often the desire to keep the project moving takes precedence in responding to the performance default. Problems arise, however, when the party who is owed the performance acts without first considering the terms and conditions… Continue reading Obtaining the Benefits of a Performance Bond: Tread Carefully