Mid Contract Bond

[chefman]

We are currently exacuting a contract, that is approx. 50% complete. Our contract states we need a performance and payment bond. Is there anyway to get this type of bond on an exsisting contract? If there is how do we secure this bond?

[ClaimsGuy]

Chefman:

Sureties view this bond request suspiciously. If the obligee allowed the project to get this far along without a bond, why are they requiring it now? The surety will be concerned that it's because there is a problem with the project.

If you are an excellent long time bond customer, the bond obligee declares in writing that there is no problem on the project, and there is a verifiable explanation for the delay, then you MAY be able to get the bond.

[Admin]

Often we get phone calls from contractors that began work on a project and try to post the bond after the fact. Usually they try to make the argument that the work is 50% complete already, so the surety has half the liability. However, it doesn't quite work like that, which ClaimsGuy can attest for. The surety would still have the full liability.

It is rare that the stars align so that we can help in these tricky situations. We have done it, but it is never easy.