Tag Archives: performance bond

Do Not Ignore the Surety’s Demand for Collateral Security

If you are furnishing a payment bond or performance bond to an owner or contractor (the obligee), whatever the case may be, then you are the principal of that bond.  Sureties, however, are not issuing bonds on your behalf out … Continue reading

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Dotting i’s and Crossing t’s when Perfecting Rights under a Subcontractor Performance Bond

As a general contractor, there are numerous projects where you want to ensure certain subcontractors are bonded. This means you want to ensure they provide a payment bond and performance bond. Requiring the subcontractors to be bonded is important for … Continue reading

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General Contractor Must Properly Perfect Obligations of Subcontractor’s Performance Bond

General contractors, to reduce and mitigate risk to the owner, may want a subcontractor to furnish a performance bond. A general contractor will want a subcontractor performance bond if it is furnishing a performance bond to the owner (unless the … Continue reading

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Ensure that the Face of the Performance Bond Expressly Covers Delay Damages

If you are an obligee under a performance bond (meaning the performance bond is designed to benefit you) then you ideally want the bond to cover delay damages. In other words, you want the performance bond to cover delay damages … Continue reading

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Florida Public Construction Bond Form

What does a Florida public construction bond look like for public projects?  As a starter, Florida Statute s. 255.05 states that the bond may be in substantially the same form as depicted below.  This is a common public construction bond form … Continue reading

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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 … Continue reading

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Recording Payment & Performance Bonds on Public Construction Projects

If you are a contractor working on a Florida public construction project (excluding an FDOT project) with a contract value in excess of $200,000, then you need to furnish the public entity with a payment and performance bond.   Prior … Continue reading

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Perfecting Performance Bond Claims

I previously discussed the statute of limitations for performance bond claims. In addition to understanding the statute of limitations, obligees need to know how to properly preserve a performance bond claim. Not properly preserving rights under the performance bond defeats … Continue reading

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Timely Asserting Performance Bond Claim

A performance bond operates to guarantee the bond principal’s performance under its contract. If the general contractor obtains a performance bond, the bond is designed to guarantee the contractor’s faithful performance under the contractor’s prime contract. If the subcontractor obtains … Continue reading

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