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Performance Bonds - 1-year delay to recommission public works project


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  #1 (permalink)  
Old 09-20-2007, 01:02 PM
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Default 1-year delay to recommission public works project

A public works project in California provides treated water to local water agencies. Can you issue a bond that will enable the owner to require the original contractor to commission a temporary chemical feed system, give the owner beneficial use, and return after one year to recommission the chemical feed system? The facility will be in operation with temporary chemical injector piping, one year later the location of the injector piping will be moved to a new location and new process facilities.

Thank you.
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Old 09-20-2007, 05:43 PM
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Default Performance Bonds

Quote:
Originally Posted by wtmcgivney
A public works project in California provides treated water to local water agencies. Can you issue a bond that will enable the owner to require the original contractor to commission a temporary chemical feed system, give the owner beneficial use, and return after one year to recommission the chemical feed system? The facility will be in operation with temporary chemical injector piping, one year later the location of the injector piping will be moved to a new location and new process facilities.

Thank you.
Bonds aren't issued to enable the owner to require the contractor to do anything. The contract has the requirements and the bond is issued to assure work is done. My suggestion is to call an agent and discuss what you needs are.
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Old 09-20-2007, 05:54 PM
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Default Thank you.

I appreciate the difference. What I am interested in is the possibility of extending the performance bond (or any other vehicle) for one year between the owner taking beneficial use, the contractor demobilizing, and the recommissioning of the plant by the original contractor once the new facilities are in-place.
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Old 09-21-2007, 08:24 AM
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Default Performance Bonds

Quote:
Originally Posted by wtmcgivney
I appreciate the difference. What I am interested in is the possibility of extending the performance bond (or any other vehicle) for one year between the owner taking beneficial use, the contractor demobilizing, and the recommissioning of the plant by the original contractor once the new facilities are in-place.
We were not all-together sure exactly what you were asking for so I apologize if I offended you. If you are now referring to a maintenance bond - that is a normal extension to a performance bond. Please feel free to call our office (215-766-1990) to speak with our head underwriter to get further clarification
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Old 09-21-2007, 01:27 PM
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Default Thank you very much.

I will inform the owner. No offense taken.

Best Regards.
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