Performance Bond Our steel erection company (serves as a subcontractor) has just been awarded a contract but it requires a Performance Bond. The bond is not a problem, our credit is fair and we have our contacts for that. The problem lies with the owner, he has been bonded in the past, who thinks that we will give up too much power by being bonded. He says once the bond is in place the general contractor has all the power and they can pretty much do what they want at will. Example: Have our crew arrive on the job 3 days early. Start the decking process before it is necessary. Rent additional equipment that is not needed. Accelerate the job when it is not needed. Hire more employees.
I am told he can do this by threatening to call the bond company or call the bond in? True or not, how do we as subcontractors address the issue?
Thanks |