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Construction Bond & Contract Provisions - A Review of Surety Rights, Duties, Obligations and Defenses
June 14, 2011
Many construction contracts today require that surety bonds be included to protect various parties to the contract. Most construction professionals are familiar with the process of obtaining surety bonds, but they may not be aware of the legal relationships that bonds establish among the principal (the contractor), the obligee (usually the owner) and the surety, and the liabilities that exist as a result.
A surety bond is not an insurance policy. A surety bond is a guarantee, in which the surety guarantees that the contractor, called the “principal” in the bond, will perform the “obligation” stated in the bond. For example, the “obligation” in a performance bond is that the principal will complete the project; and the “obligation” in a payment bond is that the principal will properly pay subcontractors and suppliers. Surety bonds can contractually affect multiple parties involved in the project.
Join Barbara Werther of Ober|Kaler's Construction Group for a 90-minute webinar designed to review the rights, duties and obligations of the parties as determined by the rules of contract interpretation. The program is hosted by WPL Publishing Co.
June 14, 2011
1:00-2:30 pm EDT
For more information, call 301.765.9525.