Guam Complaint regarding Subcontractor against contractor and surety
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How to fill out Complaint Regarding Subcontractor Against Contractor And Surety?
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FAQ
The property owner, also called the obligee, may require a performance bond for the prime contractor on a project. Ultimately, the bond protects the property owner against the risk of a job not being finished by the contractor due to default, bankruptcy, or other failures to perform.
A Performance Bond Example in Action A general contractor gets hired by a city to handle a large renovation project. The work contract stipulates the budget and timeline for the project. It also requires a performance bond. The general contractor secures the required bond, finalizes the contract, and starts renovating.
Performance Bonds ? A bond to ensure the client performs as per the conditions of the contract. These are usually 10% of the contract sum but some employers require 15%.
If one party to a contract cannot complete their obligations, the bond is paid out to the other party to compensate for their damages or costs. Jobs that require payment and performance bonds go through job or project bidding first.
Filing a Bond Claim If the contractor does not comply with the conditions of the bond, a claim can be filed with the surety company. The consumer will contact the surety directly to engage this process.