NASCLA
Performance Bond - ANS-Guarantees that the contractor will complete a contract with in
its time frame and conditions
Payment Bonds - ANS-Guarantees subcontractors and suppliers that they will be paid
for work if they perform properly under a contract
Maintenance bond - ANS-Guarantees that for stated Typically one year no defective
workmanship or material will appear in the completed project
Completion bond - ANS-Provide assurance to the financial backers have a construction
project but it will be completed on time
Fidelity bond - ANS-Covers business owners for losses due to dishonest act by there
employees
Lien bond - ANS-Guarantees that liens cannot be placed against the owners property
by contractors for payment of service
Sub contractors bond - ANS-Protects the general contractor in the event that
subcontractors do not fully perform the contract and or pay for labor and materials
Bank letter of credit - ANS-Is not a Bond but is it cash guaranteed to the owner it is not
a guarantee of performance but can be converted to a payment to the owner by a bank
or lending institution
Bid bond - ANS-Guarantees that the contractor if awarded the job will do the work at the
submitted bid price enter into a contract with the owner and furnish the required
performance and payment bonds
What is a bond - ANS-Bonds provide protection in the event that the contractual
obligation's are not met
Bond language - ANS-At a minimum Bond should contain the total dollar amount length
of the bond requirements for notice of the fact or lack of maintenance and bond
enforcement
, Filing procedures - ANS-Construction law contractual relationships govern the bond
claims process the filing process as outlined in the bond
Project changes - ANS-Unless specifically outlined in the bonds agreement the Surety
company will not cover changes to the original contract in most cases request for
additional coverage must be made and the bonding company must be notified of the
contract changes
Payment in the event of default - ANS-In the event of default Surety may provide
additional finances arrange for a new contractor or hire subcontractors to complete the
work or pay out the amount of the bond
Miller act of 1935 - ANS-Current law requiring performance and payment bond on a
federal construction project value greater than $100,000
Miller act amounts - ANS-50% on contracts less than 1 million 40% of contracts
between one and 5 million 2.5 million payment bond for contracts in excess of 5 million
Little Miller act - ANS-Similar to the Miller act for public works projects
Construction Industry payment protection act of 1999 - ANS-Addendum to the miller act
it's purpose is to improve payment bond protections for persons who furnish labor or
material for use on federal construction projects to help subcontractors with adequate
protection
All risk builders risk insurance - ANS-A form of property insurance that covers property
owners and builders for buildings under construction
All risk coverage - ANS-Provides for Direct loss by these perils that are not specifically
excluded by the policy it generally provides coverage for all risks including theft
vandalism accidental loss and damages or distraction
A subrogation clause - ANS-Occurs when the insurance company pays the insured for
damages or loss and then sues the negligent third-party to pay for the loss
Named peril builders risk insurance - ANS-Insurance policy having narrower coverage
and all risk insurance and specify what peril are covered typically for fire lightning also
wind damage explosion water damage earthquakes terrorism
Performance Bond - ANS-Guarantees that the contractor will complete a contract with in
its time frame and conditions
Payment Bonds - ANS-Guarantees subcontractors and suppliers that they will be paid
for work if they perform properly under a contract
Maintenance bond - ANS-Guarantees that for stated Typically one year no defective
workmanship or material will appear in the completed project
Completion bond - ANS-Provide assurance to the financial backers have a construction
project but it will be completed on time
Fidelity bond - ANS-Covers business owners for losses due to dishonest act by there
employees
Lien bond - ANS-Guarantees that liens cannot be placed against the owners property
by contractors for payment of service
Sub contractors bond - ANS-Protects the general contractor in the event that
subcontractors do not fully perform the contract and or pay for labor and materials
Bank letter of credit - ANS-Is not a Bond but is it cash guaranteed to the owner it is not
a guarantee of performance but can be converted to a payment to the owner by a bank
or lending institution
Bid bond - ANS-Guarantees that the contractor if awarded the job will do the work at the
submitted bid price enter into a contract with the owner and furnish the required
performance and payment bonds
What is a bond - ANS-Bonds provide protection in the event that the contractual
obligation's are not met
Bond language - ANS-At a minimum Bond should contain the total dollar amount length
of the bond requirements for notice of the fact or lack of maintenance and bond
enforcement
, Filing procedures - ANS-Construction law contractual relationships govern the bond
claims process the filing process as outlined in the bond
Project changes - ANS-Unless specifically outlined in the bonds agreement the Surety
company will not cover changes to the original contract in most cases request for
additional coverage must be made and the bonding company must be notified of the
contract changes
Payment in the event of default - ANS-In the event of default Surety may provide
additional finances arrange for a new contractor or hire subcontractors to complete the
work or pay out the amount of the bond
Miller act of 1935 - ANS-Current law requiring performance and payment bond on a
federal construction project value greater than $100,000
Miller act amounts - ANS-50% on contracts less than 1 million 40% of contracts
between one and 5 million 2.5 million payment bond for contracts in excess of 5 million
Little Miller act - ANS-Similar to the Miller act for public works projects
Construction Industry payment protection act of 1999 - ANS-Addendum to the miller act
it's purpose is to improve payment bond protections for persons who furnish labor or
material for use on federal construction projects to help subcontractors with adequate
protection
All risk builders risk insurance - ANS-A form of property insurance that covers property
owners and builders for buildings under construction
All risk coverage - ANS-Provides for Direct loss by these perils that are not specifically
excluded by the policy it generally provides coverage for all risks including theft
vandalism accidental loss and damages or distraction
A subrogation clause - ANS-Occurs when the insurance company pays the insured for
damages or loss and then sues the negligent third-party to pay for the loss
Named peril builders risk insurance - ANS-Insurance policy having narrower coverage
and all risk insurance and specify what peril are covered typically for fire lightning also
wind damage explosion water damage earthquakes terrorism
