A Tip for Performance Bond Obligees: for Maximum Protection, Obtain Increase Riders with Change Orders


It's tempting to assume that change orders automatically increase the penal sum of a performance bond that expressly waives notice of contract modifications, but pursuant to a 1992 case out of the U.S. Bankruptcy Court for the Eastern District of Tennessee, that assumption might be misplaced.

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Published In: Construction Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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