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Performance Bond Surety Not Liable if Underlying Contract Was Not Terminated
February 15th, 2021
A modular construction subcontractor provided a performance bond to the prime contractor in the AIA form A312-2010. The GC later claimed that the modular sub failed to properly perform its work, including “that more than 260 windows were leaking an…
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Categories: Construction
Pursuing a Performance Bond? Follow the Terms of the Bond
December 15th, 2016
A contractor seeking almost $1 million in claimed cost overruns against a subcontractor’s bond has been reminded that the bond terms must be followed. Or else. The bond required the prime contractor, as bond obligee, to do three things: (a) give no…
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Categories: Construction
No default notice = No performance bond recovery
February 11th, 2016
A five-sentence decision from the Eighth Circuit Federal Court of Appeal may not be a record, but it sends a blunt message: failure to provide notice of default is fatal to a performance bond claim. The reader has to go back to the lower court decisi…
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Categories: Construction