Dennis Cavanaugh and Tasnuva Islam | Construction Law Zone Most bond forms in use today, including the standard form AIA A312-2010, contain express condition precedents that trigger a surety’s obligations under the bond. Under a performance bond, the bond obligee is required to provide formal notice to the surety that the principal has materially defaulted… Continue reading Rhode Island Affirms The Principle That Sureties Must be Provided Notice of Default Before They Can be Held Liable for Principal’s Default
Tag: Performance Bond
Comply or Else: Additional Obligees Must Comply with Conditions Precedent in Performance Bonds
Daniel Miktus and James T. (Trav’) Clark | Akerman All construction project owners, lenders, and contractors take note: a recent federal court opinion offers a reminder that additional obligees on a performance bond must comply with all conditions precedent in the bond in order to enforce the bond. As a reminder, a performance bond is… Continue reading Comply or Else: Additional Obligees Must Comply with Conditions Precedent in Performance Bonds
Construction Litigation Roundup: “I Never Had a Chance”
Daniel Lund III | Phelps Dunbar “I never had a chance.” Such was the plea of a general contractor to a Maryland federal court after having been terminated for failure to perform. “The Agreement provides no express right to cure,” found the court, weighing in on the contractor’s wrongful termination claim. Indeed, the contract was… Continue reading Construction Litigation Roundup: “I Never Had a Chance”
No Free Warranty: Connecticut Court Adopts Correction or Repair Test
Daniel Towns | Troutman Pepper In All Seasons Landscaping, Inc. v. Travelers Cas. & Sur. Co. of Am., a Connecticut court considered for the first time whether the performance of warranty work tolls the statute of limitations on payment bond claims. The court ruled that it does not. It dismissed subcontractor All Seasons Landscaping, Inc.’s (ALS’s)… Continue reading No Free Warranty: Connecticut Court Adopts Correction or Repair Test
Performance Bonds – Call Me?
Robert Meade, Alistair Calvert and Tom Swarbrick | Bracewell Performance bonds are intended to guarantee a contractor’s satisfactory and timely completion of a project. There is no need for the employer to establish or prove that the contractor has defaulted on its obligations prior to making the call. For that reason, enforcing a performance bond… Continue reading Performance Bonds – Call Me?