Explain the statements about construction contract process, Civil Engineering

Assignment Help:

Explain the Statements about the Construction Contract Process

I. Surety bond assures the project owner a guarantee of funds equivalent to a promissory note. The surety bond is a promise to pay the owner a certain amount if the contractor fails in fulfilling the terms of a contract.

II. Performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. Performance bonds are issued upon Contract award and cost approximately 0.50% to 1.25% of the total contract value.

III. Builder's risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction. Risk insurance of Builder is coverage that protects a person's or an organization's insurable interest in materials, fixtures and/or equipment being utilized in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause

IV. A bid bond is issued as part of a bidding process by the surety to the project owner, to assurance that the winning bidder will undertake the contract under the terms at that they bid. The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. The bid bond assures and assurance that should the bidder be doing well, the bidder will execute the contract and provide the required surety bonds.

V. Bonds are not insurance. Bonds are a guarantee to pay made by a cosigner who is liable only if the principal fails to discharge the obligations under the Contract.


Related Discussions:- Explain the statements about construction contract process

Determine the required stirrup size and spacing requirement, A rectangular ...

A rectangular concrete beam is subjected to a factored design shear force of 200 kips.  For the beam shown below, determine the required stirrup size and spacing requirement. H = 3

#Paint, whats the mix ratio or proportion of paint components for 1litre

whats the mix ratio or proportion of paint components for 1litre

Dams, types of dams

types of dams

Plot vertical displacement - cantilever beam, 1. The cantilever beam-like s...

1. The cantilever beam-like structure  shown below is modeled  using  a 2 x 10 mesh of rectangular four-node plane stress elements of equal size. Do the following and compare with

Water transportation, Water Transportation: Water transport, in its va...

Water Transportation: Water transport, in its various forms, is one of the most efficient forms of transport, because of low fuel consumption, low environmental pollution and

Define cleaning for underwater inspection of bridge, Define Cleaning for Un...

Define Cleaning for Underwater Inspection of Bridge? Before any structure can be inspected, it is necessary to expose the surface material of the structure. Wherever there is m

Average heating season outside temperature, Produce a manual determination ...

Produce a manual determination to determine the instantaneous rate of heat loss (kW) through one part of the fabric (eg roof, glazed area, wall) based on an internal building desig

Aluminium sliding window detail drawings, what are the details of aluminium...

what are the details of aluminium sections and how are they connected for making a door or window

Determine the grain exact gravity, (i) A dry soil has a void ratio of 0.65 ...

(i) A dry soil has a void ratio of 0.65 and its grain exact gravity is = 2.80. What is its unit weight? (ii) Water is added to the sample so that its degree of saturation is 60%

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd