David Adelstein | Florida Construction Legal Updates When a contractor is defaulted under a performance bond, can its surety hire the same defaulted contractor to complete the work? Stated differently, can the performance bond surety engage its defaulted bond-principal in taking over and completing the same work the contractor was defaulted under? The answer is “yes”… Continue reading Performance Bond Surety Takeover – Using Terminated Contractor to Complete Work
Tag: Performance Bond
Properly Trigger the Performance Bond
David Adelstein | Florida Construction Legal Updates | December 25, 2017 A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee(entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it… Continue reading Properly Trigger the Performance Bond
Risk is More Than Just a Board Game: A Guide to Performance Bonds
Brian L. Lynch | Faegre Baker Daniels | June 21, 2017 Although other forms of security are possible to secure performance of a construction contract, corporate surety performance bonds remain the construction contract guarantee of choice for owners in both public and private projects. The performance bond is generally meant to protect the named obligee… Continue reading Risk is More Than Just a Board Game: A Guide to Performance Bonds
Subcontractors Must be Careful Providing Bonds when General Contractor Does Not
Christopher G. Hill | Construction Law Musings | April 5, 2017 After I wrote the title to this post, I thought, “Well, that says it all, doesn’t it?” I also considered the fact that for those that read this construction law blog on a regular basis, I am likely stating the obvious. I then thought… Continue reading Subcontractors Must be Careful Providing Bonds when General Contractor Does Not
Hurdles with Triggering a Subcontractor Performance Bond
David Adelstein | Florida Construction Legal Updates | April 1, 2017 There have been a couple of decisions as of late, particularly in federal court, that have gone in favor of a performance bond surety and against a general contractor’s claim against a subcontractor’s performance bond. These decisions have been so unfavorable that they may… Continue reading Hurdles with Triggering a Subcontractor Performance Bond