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Public Contract Bonds and Contract Price Increases

One of the basic differences between contracts for public projects and contracts for private projects are the claims that unpaid parties can file.  Specifically, while unpaid subcontractors and suppliers on private projects can file mechanics liens, on public projects those unpaid parties must file claims on a general contractor’s payment bond.  General contractors on public […]

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Risk Management – Bonds and Liens

In a recent publication of Construction Executive there is a nice article written by J. Craig Rusk on alternatives to both payment and performance bonds in the construction industry. These types of bonds are usually great places for contractors to make claims when not paid. Performance bonds secure that the contract will be performed and […]

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FAQ: The Difference Between Payment and Performance Bonds

Short Answer: Performance bonds are issued to the benefit of the owner and guarantee the prime contractor will finish performance of the contract. Payment bonds are issued to the benefit of subs and suppliers, guaranteeing they will be paid for materials and labor they furnish. Long Answer:  Whenever bonds are required on a construction project, there […]

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Got a Public Contract?: Be Sure to Preserve Your Rights to Payment

Over the past two years, the construction industry has seen a boom in public works. This is due to lower construction costs, influx of federal stimulus funds and lower financing rates for local governments. The result has meant tons of public work for contractors, who benefit both from Davis-Bacon wages and bonded work, which virtually […]

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