Dispelling misconceptions about bonds

07/10/2013 | Construction Executive magazine

Proactive communications are key to allaying misunderstandings about performance and payment bonds, writes a bond producer. Prequalification by a surety can significantly help a project owner lacking such expertise, and a surety also can assist a contractor with advice from accountants and engineers, he writes. A surety can provide additional capital to avoid contractor default and assume control of bonded contract funds, often "without the obligee or potential claimants even knowing a problem existed," he adds.

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