Construction bonds

Construction bonds - Construction bonds Bonds are a subset...

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Construction bonds Bonds are a subset of surety Sureties are defined as: One company assuming financial responsibility for the acts or omissions of another Many companies which write construction bonds refer to themselves as “surety and bonding companies” Owners may require prime contractors to furnish bonds which precede certain guarantees for the owner, or not at the option of the owner Many public owners are required by law, to include bonding requirements in the “conditions of the contract” Bonds may be written to provide any guarantee the owner wishes However on most projects where owners require contractors to provide bonds, the “big three” bond forms are utilized: Bid bond Performance bond Payment bond Other bond forms which may be utilized: Fidelity bond Warranty bond Etc., etc., etc. All bonds are written instruments All bonds have three components: The written guarantee The face amount The premium amount
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This note was uploaded on 03/30/2008 for the course COSC 153 taught by Professor Peterson during the Spring '08 term at Texas A&M.

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Construction bonds - Construction bonds Bonds are a subset...

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