Archives for September 2015

Surety Bonds and Bank Letters of Credit Comparisons

By:  Jack Anderson, President This is part 2 in a series of blog posts where we will continue to explore surety bonds and bank letters of credit – what each is, their differences, and the advantages and drawbacks with each. How is each obtained? The contractor obtains the bond through a surety bond agency or a surety bond producer such as Goldleaf Surety Services. The contractor obtains the LOC through a banking or lending institution. What is your borrowing capacity with … [Read more...]

Surety Bonds and Bank Letters of Credit Comparisons

By:   Jack Anderson, President Over the next several blog posts, we will explore surety bonds and bank letters of credit – what each is, their differences, and the advantages and drawbacks to each. Let’s start with a basic definition for each. A surety bond is a three-party agreement between the surety company, the oblige (project owner), and the principal (the contractor).  A performance bond protects the owner from non-performance and financial exposures should the contractor … [Read more...]

Troublesome Contract Clauses: Change in Terms

The final troublesome contract clause we will look at in this series is the Changes in the Work clause. A contract change occurs when an event or condition modifies the work as defined in the contract documents. Changes may include: Additions to or deletions from the work to be completed Changes in the materials specified Corrections in the specifications or drawings Acts or omissions of other contractors or trades Departures from the contract schedule Changes affecting the … [Read more...]