Guarantee?

[Numbers]

What does a Performance Bond guarantee?

[Surety Queen]

Originally Posted by Numbers

What does a Performance Bond guarantee?

A Performance Bond guarantees the faithful performance of the contract and payment (payment bond) of materials and labor by the contractor to all subcontractors and material suppliers. The bond is submitted by the winning bidder upon award of the contract. The Performance & Payment Bond are typically issued together, as they are so closely related.
For more information, please visit the following link:
Performance Bonds - Get a free quote now!

[Surety Insider]

This series of articles on the Butler County prison project in Pennsylvania illustrates how performance and payment (P&P) bonds work and what they guarantee:

Work on prison scheduled to begin Oct. 1

Contractor pledges faster work

Prison project may take longer

Financial impact of prison delay grows

Bonding agent for prison project to hire new general contractor

Although some of the terminology is erroneous or imprecise, these articles describe the evolution of a typical performance bond default and the payment bond claims which usually accompany it. If you click through these, you'll get a feel for the purpose of a P&P bond.

Using a real-world example, these articles generally show what is guaranteed by the bonds, and the surety claim process used to see it through.

[Surety Insider]

New contractor named to finish Butler County jail construction

[Admin]

Thanks for the update!

Always interesting to watch these things progress.

[Surety Insider]

Rycon gets notice to proceed on delayed Butler County jail project

[Surety Insider]

This looks like it could be related to what is typically called "subcontractor ratification."

Two contractors leave Butler County jail site

[Admin]

I can't imagine this one ending pretty.

[Surety Insider]

Here's another one that should be interesting to follow and serve as an example to those that come here to educate themselves on these matters.

In, "Terminal's overruns now part of lawsuits," it shows how the parties interact in an entire chain of events, from the public owner, to the smaller subcontractors, within the surety claims process.

The article states: "'Because of incomplete, inadequate, inaccurate and insufficient plans and specifications and untimely project administration (which went beyond mere lethargy and bureaucratic bungling) by POJV, Miami-Dade Aviation Department and Miami-Dade Aviation's architects, [Hensel Phelps] and its subcontractors' performance under both trade contracts was delayed, hindered, and actively interfered with, resulting in [Hensel Phelps] and its subcontractors' cost of performance increasing substantially,'' the lawsuit says."

But that is only one side of the story, of course.

The attorneys, surety consulting people and expert witnesses on all sides may have different views. As this story is updated, I'll post it here.

[Surety Insider]

Firms on Miami Airport Job Sue Bonding Companies