Bảo hiểm & Quyền cầm giữCâu 1547 / 1632
Why might an owner prefer that the general contractor obtain a payment bond rather than rely solely on the contractor to pay subs?
a.Unpaid subs can claim on the surety instead of liening the property
b.The surety takes over and completes the work if the contractor defaults
c.The bond premium is refunded to the owner when the project closes
d.The bond releases the owner from retention obligations on the contract
Giải thích
A payment bond gives unpaid subcontractors and suppliers a solvent source other than the owner's real property, which reduces the owner's exposure to liens and to paying twice for the same work. (b) describes the performance bond, which answers non-completion — the two bonds are issued together and protect against different failures. (c) misunderstands surety pricing: the premium is earned, and in any case it is a cost the contractor carries into the contract price. (d) is unrelated, since retention is governed by the contract and by Civil Code §8811.
Trích dẫn luật: Civil Code §8600 et seq.Luyện miễn phí toàn bộ 1632 câu hỏi — không cần đăng ký.
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Câu hỏi liên quan cùng chủ đề
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Người kiểm duyệt Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — kiểm tra)