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

What is immediate settlement, Q. What is Immediate Settlement? Strain i...

Q. What is Immediate Settlement? Strain in all coarse grained, dry or partly saturated fine grained soils occur immediately after the application of stress. Hence, this change

Define the pump and motor efficiencies - hydrolic system, Define the Pump a...

Define the Pump and Motor Efficiencies Equations account for the loss of power, primarily due to mechanical friction as a result of rotating components in the pump and motor.

Compute the negative skin friction of the pile group, A square pile group o...

A square pile group of 9 piles passes by a recently filled up material of 4.5 m depth. The diameter of the pile is 30 cm and pile spacing is 90 cm centre to centre. If the unconfin

Key role of drilling fluid in rotary drilling, Question What is key rol...

Question What is key role of drilling fluid in rotary drilling in site search? Answer Drill fluid in rotating serves two main reasons. (i) Facilitate rotation of

Widening on curves, Widening on Curves: Pavements have to be widened ...

Widening on Curves: Pavements have to be widened on curves because of the fact that : (a) the vehicle has a wheel base and overhang on the front and rear, and the vehicle

Define resultant force on a given area of a horizontal plane, Resultant For...

Resultant Force on a Given Area of a Horizontal Plane By equation, the total vertical force applied to an area A on the plane is: Resultant Force R = ΡA = (lb/ft 2 )(ft 2 )

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