News & Analysis as of

Performance Bonds Construction Industry

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

Porter Hedges LLP

Key Considerations to Perfect Performance Bond Claims in Texas

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Perfecting a performance bond claim in Texas requires careful attention to legal requirements and procedural details set forth on the face of the bond and under Texas law. Perfection of a performance bond claim is often...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

Baker Donelson

Formal Notice of Default Necessary to Start Peremptive Period for Public Owner's Claims Against Performance Bond Surety

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Construction project participants sometimes disregard contractual formalities, particularly in the "heat" of a project dispute. However, consequences can and often do arise in those circumstances, and sometimes the parties do...more

Procopio, Cory, Hargreaves & Savitch LLP

[Webinar] Annual Construction Law Forum - November 10th, 10:00 am - 3:00 pm PDT

You are invited to join Procopio’s Construction & Infrastructure Law attorneys and guest industry speakers on Thursday, November 10, 2022, for an informative half-day webinar focused on the most pressing California...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

Payne & Fears

Texas Federal Court Delivers Another Big Win for Policyholders on CGL Coverage for Construction-Defect Claims and “Rip-and-Tear”...

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Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue...more

Pillsbury - Gravel2Gavel Construction & Real...

Performance Bond Primer: Need to Knows and Need to Dos

If you are a construction contractor, you deal with performance bonds as part of your business and daily work. They are necessary for almost every project you are participating or will participate in, and, along with other...more

Saul Ewing LLP

Delaware Federal Court Imposes Limit on Surety's Liability Under Performance Bond

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A recent decision from the United States District Court for Delaware held that a surety was not liable for consequential damages to a building owner after a default by its contractor because the surety’s liability could not...more

Miles & Stockbridge P.C.

Construction Executives Should Reflect On Disclosure Duties Owed To Bonding Companies

As MGT Construction executives start pleading guilty to conspiracy to commit wire fraud and bank fraud, every construction company executive should reflect on the duties of disclosure owed to their bonding companies....more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Love Stinks

Dear YouDig?, We are in the middle of a massive addition to our warehouse. The value is high seven figures in construction services. We don’t do this all the time but we fell in love with the Design-Builder, signed their...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

Maynard Nexsen

Performance Bonds – Will the Liability Ever End?

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Construction contracts for commercial projects, including the ongoing boom in apartment projects, routinely require the general contractor and/or the subcontractors to provide performance bonds. Performance bonds are also...more

Troutman Pepper

GAR Know-How Construction Arbitration - United States

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Legal System - 1. Is your jurisdiction primarily a common law, civil law, customary law or theocratic law jurisdiction? Are the laws substantially derived from the laws of another jurisdiction and, if so, which? What...more

Bass, Berry & Sims PLC

The Christian Doctrine Strikes Again … To Require Performance and Payment Bonds in all Construction Contracts

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On November 5, 2018, the Federal Circuit held in a precedential decision that bonding requirements in FAR 52.228-15, “Performance and Payment Bonds—Construction,” were read into all construction contracts by operation of law...more

Troutman Pepper

Eleventh Circuit Holds That The Statute Of Limitations On Payment Bond Claim Under Georgia Law Commences At Substantial Completion...

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Strickland v. Arch Ins. Co., No. 17-10610, 2018 U.S. App. LEXIS 504 (11th Cir. Jan. 9, 2018) - Strickland provided sand to a paving company (“Douglas”) for a Georgia Department of Transportation (“GDOT”) road improvement...more

Bennett Jones LLP

Part 2: Unpaid Subcontractors Beware

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The Supreme Court’s Decision in Valard - On September 14, 2016, we published Unpaid Subcontractors Beware, which commented on the Court of Appeal's decision in Valard Construction Ltd v Bird Construction Company, 2016 ABCA...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

Bradley Arant Boult Cummings LLP

My Roof, My Rules: Arbitrators May Determine Their Own Jurisdiction When the Parties Delegate that Authority

An issue that repeatedly comes up in construction disputes is the scope of an arbitration agreement. Courts generally interpret agreements to arbitrate broadly, and, where the arbitrability of a specific claim has been at...more

Troutman Pepper

Sharply-Divided Washington Supreme Court Holds That Sureties, Like Insurers, Must Pay Attorney Fees to Prevailing Parties When...

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King Cnty. v. Vinci Constr. Grands Projets/Parsons RCI/ Frontier-Kemper, JV, No. 92744-8, 2017 Wash. LEXIS 743 (July 6, 2017) - King County contracted with three construction firms (collectively, “VPFK”) to construct a...more

Stoel Rives LLP

Washington Supreme Court Affirms Brightwater Decision Regarding Application of Olympic Steamship to Sureties

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On July 6, 2017, the Washington Supreme Court confirmed that the equitable rule announced in Olympic Steamship—providing for attorney fees where the insurer compels the insured to take legal action—applies to performance bond...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

Eleventh Circuit Affirms Decision Under Florida Law Barring Contractor’s Performance Bond Claim for Failure to Comply With Notice...

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Int’l Fidelity Ins. Co. v. Americaribe-Moriarty JV, 2017 U.S. App. LEXIS 3628 (11th Cir. Feb. 28, 2017) - Americaribe-Moriarty Joint Venture (“Americaribe”) entered into a subcontract with Certified Pool Mechanics I,...more

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