Surety Bonds vs. Subcontractor Default Insurance
Written by Andrew Gibson, a partner and member of the Construction and Design Group in the Portland office of Stoel Rives LLP.
If a contractor cannot meet deadlines on a construction project or a subcontractor pulls out of a new project bid in order to pursue a more attractive opportunity, the project owner and/or prime contractor face potentially significant damages, which can include corrective work, costs of completion or substitute performance, and delay. In my latest column for the Daily Journal of Commerce, I discuss the characteristics of the two most important options that exist for owners and prime contractors to protect themselves against such risks – performance bonds and subcontractor default insurance (SDI) – and provide some suggestions to help them pick the appropriate one.
Read more about this at Stoel Rives LLP | Ahead of Schedule Construction Blog.
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