News & Analysis as of

Contractors Performance Bonds

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Pitfalls of the AIA Form of Performance Bond

When an owner requires a contractor to post a payment and performance bond, the contractor, invariably, provides a bond in the form of AIA Document A312-2010. The payment portion of the bond is primarily for the benefit of...more

Vinson & Elkins LLP

Bond Calls: The Essential Cocktail of Considerations – Provided Shaken, Not Stirred

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Bond markets have been in upheaval recently, with knock-on impacts on decisions on whether to make or defend calls on performance security on construction projects. In the first quarter of this year, we saw the continued...more

Amundsen Davis LLC

New Changes to Illinois’ Wage Payment and Collection Law Seeks to Pressure General Contractors to Become Union Signatory

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On June 10, 2022 Governor Pritzker signed into law two new amendments to the Illinois Wage Payment and Collection Act (“Act”) that now expose non-union general contractors to liability for the wages of their subcontractor’s...more

Tonkon Torp LLP

To Bond or Not to Bond Private Construction Jobs

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When representing clients in negotiating and drafting construction agreements for private construction work, I am often asked: Should we require the contractor to provide a bond? This question doesn’t arise on public works...more

Stoel Rives -  Ahead of Schedule

Another Risk Management Tool for Private Owners in a Volatile Market

Given, well, the state of everything, private owners should seriously consider requiring the contractor to secure a performance bond (a third-party surety guaranteeing the contractor’s performance under the contractor’s...more

Saul Ewing LLP

Language in Performance Bond Critical in Determining Surety’s Rights to Complete

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If an owner terminates a contractor due to a contractor default on a bonded project, can the surety hire the same contractor to complete the work under the bond? Depending on the language of the bond, it may be permissible...more

Sheppard Mullin Richter & Hampton LLP

Contractors May Benefit by Taking Equity in the Project They are Constructing

Contractors may benefit in making a small equity investment in the projects they construct. The financial benefit can arise from the investment itself and from improved understanding and communication with the owner during...more

Faegre Drinker Biddle & Reath LLP

Risk is More Than Just a Board Game: A Guide to Performance Bonds

Although other forms of security are possible to secure performance of a construction contract, corporate surety performance bonds remain the construction contract guarantee of choice for owners in both public and private...more

Farella Braun + Martel LLP

Courts Misunderstand the Meaning of “That Particular Part”

This is part one of a two-part series looking at how court decisions in recent years have thwarted general contractors’ reasonable expectation of coverage under their general liability policies....more

Troutman Pepper

Federal District Court in California Holds that Subcontract Provision Binding Subcontractor to Result of Dispute Resolution under...

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DVBE Trucking and Construction Co., Inc. v. McCarthy Building Companies, Inc., 2015 U.S. Dist. LEXIS 90052 (N.D. Cal. July 10, 2015) - This payment dispute case arises out of a Veterans Affairs (“VA”) construction...more

Seyfarth Shaw LLP

Project In(Site): Legal Developments Impacting Construction & Government Contract Industries

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Welcome to the inaugural issue of Project In(Site), Seyfarth’s Construction and Government Contracts practice groups’ publication focusing on decisions or other items of interest for construction and government contract...more

Poyner Spruill LLP

A Brief Look At Common Construction Loan Credit Enhancements

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As the competition for construction loan projects remains at unprecedented levels in much of the country, lenders are frequently being asked to waive, modify or re-visit their standard construction loan credit enhancement...more

Foley & Lardner LLP

Seventh Circuit Limits Construction Lender’s Use of Title Insurance Policy to Cover Construction Liens Created by Lender’s Cutoff...

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In a recent decision written by Judge Sykes, affirming a decision from the Western District of Wisconsin, in an issue governed by Wisconsin law, the Seventh Circuit ruled that a title insurer has no duty to indemnify a...more

Snell & Wilmer

Construction Bonds and Subguard Insurance

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In virtually all public projects (and in many private projects), the owner requires the general contractor to post a performance bond and a payment bond. Recently, in some cases, general contractors have obtained...more

Snell & Wilmer

Under Construction - June 2015

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Letter from the Editor - Welcome to the summer edition of our Under Construction newsletter. In this issue, we highlight several hot topic items affecting the construction industry such as what happens when the...more

Troutman Pepper

Federal District Court Holds that General Contractor’s Failure to Provide Notice of Default Does Not Preclude Recovery on...

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Curtiss-Manes-Schulte, Inc. v. Safeco Insurance Company, 2015 U.S. Dist. LEXIS 10032 (W.D. Mo. 2015) - This dispute between a general contractor and its subcontractor’s performance bond surety arose out of a renovation...more

Snell & Wilmer

Utah Clarifies Lien Amounts and Bonding Requirements

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The Utah Supreme Court recently clarified that the only permissible amounts to claim under Utah’s mechanic lien statutes are those “equivalent to the value of the services rendered, labor performed, or materials or equipment...more

Troutman Pepper

Surety Bonds: Direct Claims v Derivative Claims – Who Knew?

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New Bern Riverfront Dev., LLC v Weaver Cooke Constr., LLC (In re New Bern Riverfront Dev. LLC), 521 B.R. 718 (Bankr. E.D.N.C. 2014) – The debtor made claims against a surety that issued a performance bond in connection with a...more

Bradley Arant Boult Cummings LLP

Virginia Public Contractors Beware: Fourth Circuit Upholds Cap on Contractor Recovery for Changed Work

Recently, in Carnell Constr. Corp. v. Danville Redevelopment & Housing Auth., the federal appellate court covering West Virginia, Virginia and the Carolinas upheld a trial court’s determination that a Virginia statute places...more

Cohen Seglias Pallas Greenhall & Furman PC

Amendments to Ohio P3 Legislation Add Bonding Requirements with a Twist

It is no secret within the construction industry that public-private partnership (P3) project delivery has recently become all the rage. The demand for infrastructure repairs and improvements is high, and the public dollars...more

Carlton Fields

Fla. Case Provides Practicum On Arbitrability

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The Middle District of Florida recently, in U.S. Surety Co. v. Edgar, provided a practicum on arbitrability jurisprudence under the Federal Arbitration Act, answering key questions about (1) whether nonsignatories to an...more

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