Posted by and , Surety Bond Quarterly
THIS ARTICLE IS offered to help bond producers and their small contractor clients address surety-related questions that may arise during performance of a construction project. Let’s assume the bonded small contractor (principal) is performing a project on which the owner (obligee) issued a notice to proceed some nine months ago. Let’s assume further that problems have started to emerge on the project. Think generally in terms of performance and payment issues such as schedule delays, differing site conditions, costly changes, personnel difficulties, slow payment on invoices, and the like. Let’s say tensions are on the rise and the small contractor, as the principal, is starting to get worried. However, the obligee has issued no deficiency notices yet.