Construction Management
5th Edition
ISBN: 9781119256809
Author: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
Publisher: WILEY
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Question
Chapter 2, Problem 4RQE
To determine
Name the bond that guarantees that when a contractor goes bankrupt on a project, the surety will pay the required fund to finish the job.
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What type of bond guarantees that if a contractor goesbankrupt on a project the surety will pay the necessaryamount to complete the job?
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What standard forms of contract are offered by JCT?
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- A successful contractor bidding for a project is required to engage an bond by the client. Discuss reasons for the requirement. insurance/performancearrow_forward6. Match the following terms with the most correct explanation Term Explanation Payment Bond Provides the owner with an amount to cover the damages/costs if the apparent low withdraws Bid Bond Provides the owner with a means for completing the work if the contractor cannot complete it. Lien Protects suppliers, subcontractors and employees Non-payment by the General Contractor Performance Bond Used primarily in private contracting; the General contractor and first-tier subcontractors place a debt upon the facility if they haven't been paid.arrow_forwardWhy is it important to understand how to choose the correct type of consruction contract to issue?arrow_forward
- What are the obligations of the contractor?arrow_forwardWhy is the contractor normally required to submit a bidbond when making a proposal to an owner on a competitivelybid contract?arrow_forwardIs the final amount paid to a contractor under a unitprice contract limited by the quantities of materials or work shown in the original Bid Schedule?arrow_forward
- In transferring risks to sub-contractors, should the bonding capability of the sub-contractor be a factor? O a. No. It only increases the cost O b. Yes. You can charge the owner more money. O c. No. Sub-contractors are fully responsible O d. Yes. Bonding protects from a default by the sub-contractorarrow_forwardDefine the term fixed-price contracts?arrow_forwardAn owner can protect themselves from a failure of the low bid contractor to live up to their bid by obtaining a Bid Bond. Explain?arrow_forward
- A contractor provided a surety bond as required by the bid specification for the building project. In this situation, the contractor is referred to Producer Surety Oblige Principlearrow_forwardDescribe the procedure of how partial payments to the contractor is done?arrow_forwardWhat are the several factors to chose a contract?arrow_forward
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