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.