DON\'T FORGET TO wRITE YOUR NAME! 27. True or False: in a construction su bond t
ID: 1709876 • Letter: D
Question
DON'T FORGET TO wRITE YOUR NAME! 27. True or False: in a construction su bond the contractor is the party who agrees to perform as specified, and if the contractor fails, the surety pays the contractor the amount of the bond (be careful on this one) a. True b. False 28. What is the term describing the maximum amount of uncompleted bonded projects a bonding company will allow a contractor to have at any one time 29. Which of the following entities is NOT a party to a typical construction surety bond (but NOT a bid bond)? a. The surety b. The policyholder c. The owner d. The contractor, also called the principal e. All are parties to a typical construction bond 30. Answer the following questions about the Miller Act (1 point each): a. When was it passed? b. Do States have their own kind of Miller Act? c. What are they called in slang? d. What kind of bonds does it mainly pertain to? mitted daim forExplanation / Answer
27 ) A type of surety bond used by investors in construction projects to protect against an adverse event that causes disruptions, failure to complete the project due to insolvency of the builder(s), or the job's failure to meet contract specifications. ... May also be called a "construction surety bond" or a "contract bond".
A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract.
So TRUE
28 ) Bonding Capacity : term known to describe maximum amount of uncompleted projects a bonding company will allow a contractor
29 ) The policyholder has no role in surity bond
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