a) Current ongoing work b) Mechanic's Lien c) Level of Technical Experience
Who are the three basic parties involved in any construction bonding arrangement?
1) Surety 2) Owner 3) Contractor
In what major section of the contract is the time duration of the project normally specified?
What type of bond guarantees that if an owner goes broke on a project the surety will pay the necessary amount to complete the job?
Explain the difference between insurance and bonding in the context to project success/risk?
Insurance companies expect losses while bonding companies work to prevent losses.
Insurance companies only repay what is lost while bonding companies work to ensure that a project is completed
Why are most construction bids based on a lump sum? Give 4 distinct reasons
1) Encourages competitive bidding 2) Project Scope in well designed beforehand 3) Little financial risk to owner 4) Used mostly in public projects so the public/taxpayer can know exactly what their money is being used for