Unraveling the Process: How Surety Bonds Get Cancelled
Download MP3 Description:
- Title: Protecting Your Surety Bond: Understanding Contractual Responsibilities in Construction
- Key Takeaways:
- Ensure you follow the terms of your surety bond to maintain coverage.
- A general contractor with a $3 million surety bond was left unprotected because they failed to terminate a subcontractor with faulty workmanship.
- The insurance company was not obligated to pay out the bond because the contractor did not act quickly enough to remove the risk from the surety.
- Even with a bond in place, you are not fully protected if you don’t comply with the contract’s trigger terms.
- Take immediate action if you become aware of risks or poor performance to avoid potential financial loss and ensure your bond remains valid.
- Important Reminder: Stay proactive and aware of the conditions surrounding your construction projects. Ignoring risks or failing to act swiftly can invalidate your surety bond and leave you exposed to unexpected liabilities.
