The Expert Podcast

If you have surety bonds on your construction projects make sure you abide by the terms of the bond or by the trigger terms in the contract to make sure you retain your coverage Here's a project where a general contractor had a $3 million surety bond To cover them and their subcontractors and the insurance company was resolved from having to pay on that bond because The general contractor did not terminate the sub Because of faulty workmanship They were made aware that the subcontractor Was doing things incorrectly Allegedly according to this article And they didn't take Fast enough Action To remove that risk from their surety And by doing that it released the surety company from having to pay out on the bond And this is obviously something they had knowledge of So you want to make sure you're aware of what's going on with your construction projects But it's an important Wake up call Just because you have a bond Doesn't mean that you're completely out of the woods You want to make sure that you're abiding by the terms of the contract yourself And if you're aware of risks That you're not allowing them to extend or continue on a project because at that point The bond may not protect you or the obligee the way that you thought it would