The performance bond on a public works project protects the:
Giải thích
The performance bond names the public agency as obligee and guarantees that the work will be completed according to the contract; if the contractor defaults, the surety arranges completion or pays damages up to the penal sum. Unpaid subs and suppliers look instead to the payment bond required by Civil Code §9550 and to a stop payment notice. A surety bond is not insurance for the principal: it never indemnifies the contractor against its own defective work, and the surety may seek reimbursement from the contractor after paying. Delay damages against the agency are a contract claim, not a bond promise.
Trích dẫn luật: Public Contract Code §20170; Civil Code §9550Luyện miễn phí toàn bộ 1632 câu hỏi — không cần đăng ký.
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Câu hỏi liên quan cùng chủ đề
- A city hires a contractor for a $50,000 public sidewalk repair. Regarding prevailing wages, the contractor must:
- A contractor on a public works project willfully fails to produce certified payroll records after proper written request. The contractor may face:
- On a federal public works project, the prevailing wage requirement comes primarily from the:
- DIR public works contractor registration generally must be:
- A subcontractor on a public works project is not paid. To make a claim on the prime contractor's payment bond, the subcontractor generally must:
- When calculating whether it has met the prevailing wage obligation, a contractor may generally credit:
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