VOLUME 3   ISSUE 23   JUNE 06, 2014


By Bruce Jervis


Contractors are frequently required to furnish payment and performance bonds. It is mandatory on most public projects and common on private projects. The bonds guarantee the contractor’s payment of its debts and performance of the work. When a project owner requires bonds, the owner is the “obligee,” the recipient of the guarantee. When a prime contractor requires a subcontractor to furnish bonds, the prime is the oblige.


Corporate sureties go to great lengths to mitigate their risk when issuing bonds. If the bonded contractor defaults, triggering the bond obligation, the surety has almost unfettered discretion in dealing with the situation. Bonded contractors (and frequently their individual owners) are then liable for indemnifying, or reimbursing, sureties for all expenditures. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Surety Entitled to Demand Collateral from Bonded Contractor
  • Contractor’s Aggressive Pre-Trial Discovery Waived Arbitration
  • Workers’ Comp Denial Not Subject to RICO Action


By Steve Rizer


A new standard agreement from the ConsensusDocs coalition is expected to make it easier for design professionals and design-builders to contract on federal design-build projects. The comprehensive agreement provides the business and contractual terms and conditions for a design-builder to hire an architect or engineer on a design-build project in a manner consistent with federal contracting laws and practices. It is believed to be the first standard design-build agreement for design professional services on federal projects. ... Read more.


By Steve Rizer


For officials in the United States who believe that mandating the use of building information modeling (BIM) technology for publicly funded projects is too onerous of a requirement, perhaps they would reconsider their position after examining the results of a survey recently conducted across the United Kingdom, where a mandate of this sort is in place. Most of the 1,000-plus construction professionals responding to the survey (58 percent) believe that the U.K. government “is on the right track with BIM.” Only about one in six survey respondents (16 percent) disagrees with that statement, while the remaining one-quarter of them neither agree nor disagree. ... Read more.





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