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

Orientation of wing walls in designing of bridge abutments, Question Wha...

Question What is consideration in selecting an orientation of wing walls in designing of bridge abutments ? Answer There are three familiar arrangements of wing walls in

Rehabilitation of Concrete Roads, Step by step rehabilitation strategies wi...

Step by step rehabilitation strategies with drawing, figures, and illustrations

Bituminous concrete, Bituminous Concrete: Bituminous Concrete (BC) is...

Bituminous Concrete: Bituminous Concrete (BC) is a hot-mix superior type of bituminous surfacing, having a low voids (3-5 per cent), good durability high imperviousness and g

What is rail lubricators, Q. What is Rail Lubricators? 1. P & M type of...

Q. What is Rail Lubricators? 1. P & M type of lubricators - These lubricators can be used for lubrication of FF rails as well as BH rails. 2. Elgi grease pump - Elgi Bucket

Stone, STONE Stone is a 'naturally available building material' used fr...

STONE Stone is a 'naturally available building material' used from the early age of civilization. It is available in the form of rocks, which is cut to needed size and shape an

Reduced levelling, what is the theary of reduced levelling

what is the theary of reduced levelling

Purpose of reinforcement in concrete roads, Q. Purpose of reinforcement in ...

Q. Purpose of reinforcement in concrete roads? The major purposes of reinforcement in concrete roads are: (i)  To control the development and pattern of cracks in concrete p

Explain frame members effective lengths, Explain Frame Members Effective Le...

Explain Frame Members Effective Lengths a. Effective length is a product of an effective length factor (k) and the actual length of the column. b. k depends on the rel

Define recommendations for ptfe, Define Recommendations for PTFE? (a) I...

Define Recommendations for PTFE? (a) It can be either of the two forms given below: (i) Dimpled large sheet It may be circular or rectangular divided maximum into four pa

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