Drafting the Form of the Performance Bond

If you are an owner and want the general contractor to furnish you a performance bond, or if you are a general contractor and want a subcontractor to furnish you a performance bond, there is a huge benefit in drafting the performance bond form you want the surety to execute. ¬† This is because the performance bond is designed to benefit you–the obligee or beneficiary of the bond-so drafting the terms that trigger the application of the bond is important. ¬†Also, the bond will be construed to provide you the broadest coverage, even if you (as the obligee or beneficiary of the bond) had a hand in drafting the language.

 

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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