Attorney: Sureties must be wary of arbitration clauses in contracts they bond | Surety identifies contractor to complete N.C. replacement bridge | Surety seeks contractor to complete N.J. community park
September 11, 2019
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A court case from New York shows that a commercial contract's arbitration clause can apply to a surety if the clause is incorporated by reference in the terms of a bond. Sureties need to be aware of such clauses and craft bond terms accordingly, an attorney writes.
A surety has selected a new contractor to complete a bridge project in North Carolina. The surety is making payments of $1,000 a day in liquidation damages to the state transportation department pending the project's completion.
A surety is preparing to hire a new contractor to complete a $2 million community park in a Randolph Township, N.J. The township manager said the surety has been paying vendors and subcontractors after the project's original general contractor defaulted.
A California court case serves as a cautionary tale about recording a mechanic's lien prematurely, an attorney writes. The case revolved around a subcontractor that recorded a lien before its work was actually complete, which violated state law and caused a trial court and appeals court to decide that the company could not legally foreclose on the lien.
The Massachusetts Supreme Judicial Court has held that a rule of construction law that prevents contractors from getting an off-contract quantum meruit recovery should be supplanted to avoid injustice. The court reversed a lower court decision that a contractor could not recover on a claim after falsely representing that subcontractors had been paid, even though no claims had been filed against the contractor and no loss had occurred for the project owner.
Take a Fresh Look at Killer Construction Contract Clauses During NASBP's September 25 Virtual Seminar
Klinger, left, and Salamirad (NASBP)
Join us for the NASBP Virtual Seminar at 2 p.m. Eastern on Sept. 25, when Marilyn Klinger and Ali Salamirad of SMTD Law share their stories and experience as they examine a variety of onerous construction contract clauses in prime contracts, subcontracts and performance bonds. The presenters will explain why these clauses are problematic and will identify alternatives that can help solve issues these clauses attempt to address. Attendees will also have the opportunity to submit their questions before and during the Virtual Seminar and to have them answered before the Virtual Seminar ends. Register now! Remember to submit your questions prior to the live event. This NASBP Virtual Seminar is sponsored by Old Republic Surety.
Priority registration open for 2020 NASBP Winter Surety School and Sales Workshop
Join NASBP from Jan. 19 to 24, 2020, for the Winter Session of the NASBP William J. Angell Surety School in Dallas. The William J. Angell Surety School is the premier educational event for surety professionals. For more than three decades, the School has provided students with the opportunity to learn the business from the top surety producers and underwriters in the country. This Winter Session of the School will offer Levels I and II. Level I provides an introduction to the surety industry and familiarization with the function and process of bonding. Level II provides an understanding of the producer, surety and contractor relationship as well as techniques for gathering contractor information and preparation of the case submission to the surety. For the first time, NASBP also will be offering the NASBP Sales Workshop in conjunction with the Winter School; more information and registration on this exciting offering are coming soon! Email NASBP for more information on the Winter Surety School. Register now.
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Everybody has to know for themselves what they're capable of.
Sir Daniel Day-Lewis, actor
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.