{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

CE 460 Chapters 7-8

CE 460 Chapters 7-8 - CE 460 Lecture Notes Chapter 7...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
CE 460 Lecture Notes Chapter 7 Contract Surety Bonds
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Contract Surety Bond Definition – Third Party Indemnification Covers Private Work Public Work Foreign work Bid and Proposal
Image of page 2
Surety Bonds in Construction The bonders agree to indemnify the owner against any default or failure of the prime contractor. Contract bonds guarantee that the work will be completed in accordance with the contract documents and that all construction cost will be paid.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Types Performance Payment Subcontract Bonds Maintenance Bonds Subdivision Bonds Fidelity Bonds Paragraph 7.18
Image of page 4
Performance Bonds A performance bond acts primarily for the protection of the owner. It guarantees that the contract will be performed and that the owner will receive its structure, built in substantial accordance with the terms of the contract. It protects the owner against liquidated damages.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Payment Bonds A payment bond acts primarily for the protection of third parties to the contract and guarantees payment for labor and materials used or supplied in the performance of the construction.
Image of page 6
The Miller Act The Miller Act prescribes the requirements of performance and of payment bonds in c federally funded construction projects.
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Statutory vs. Common- Law Bonds Miller Act - $25,000 Plus on Federal Construction Projects
Image of page 8
Investigation by Surety Before a surety will furnish an unknown contracting firm with a bid bond or contract bond, a thorough program of investigation is carried out to establish the past record and current commitments of the company Characteristics of the project Total amount of uncompleted work The adequacy of working capital and the availability of credit Spread between the low bid and the next highest
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern