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
Tag: Performance Bond
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?
Don’t Pay for Your Performance Bond More than Once
Bill Wilson | Construction Law Zone An often-overlooked part of contract negotiations is the language included in the performance bond. While the owner or contractor (bond obligee) requires a performance bond and pays for it, negotiating efforts are typically spent on the main contract language itself rather than the bond. A common go-to performance bond… Continue reading Don’t Pay for Your Performance Bond More than Once