Michael McNamara and Lexie Pereira | American Bar Association Subcontractor Default Insurance (“SDI”) is marketed as a substitute for a subcontractor performance bond as SDI provides coverage for a prime contractor’s losses due to a subcontractor’s failure to perform on a project. Based on the purpose of SDI and with “Default” in its full name,… Continue reading The Silent ‘D’ in SDI: Subcontractors May Not Need to be Notified of Default for Prime Contractors to Receive Subcontractor Default Insurance Coverage
Tag: Subcontractor Default Insurance
Surety Bonds vs. Subcontractor Default Insurance
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
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