NASCLAALLQUESTIONSWITH
COMPLETESOLUTION.
PerformanceBond-CORRECTANSWER-Guaranteesthatthecontractorwill completeacontractwithinitstimeframeandconditions PaymentBonds-CORRECTANSWER-Guaranteessubcontractorsand suppliersthattheywillbepaidforworkiftheyperformproperlyunderacontract Maintenancebond-CORRECTANSWER-GuaranteesthatforstatedTypically oneyearnodefectiveworkmanshipormaterialwillappearinthecompleted project Completionbond-CORRECTANSWER-Provideassurancetothefinancial backershaveaconstructionprojectbutitwillbecompletedontime Fidelitybond-CORRECTANSWER-Coversbusinessownersforlossesdueto dishonestactbythereemployees Lienbond-CORRECTANSWER-Guaranteesthatlienscannotbeplaced againsttheownerspropertybycontractorsforpaymentofservice Subcontractorsbond-CORRECTANSWER-Protectsthegeneralcontractorin theeventthatsubcontractorsdonotfullyperformthecontractandorpayfor laborandmaterials Bankletterofcredit-CORRECTANSWER-IsnotaBondbutisitcash guaranteedtotheowneritisnotaguaranteeofperformancebutcanbe convertedtoapaymenttotheownerbyabankorlendinginstitution Bidbond-CORRECTANSWER-Guaranteesthatthecontractorifawardedthe jobwilldotheworkatthesubmittedbidpriceenterintoacontractwiththeowner andfurnishtherequiredperformanceandpaymentbonds 1 / 2
Whatisabond-CORRECTANSWER-Bondsprovideprotectionintheeventthat thecontractualobligation'sarenotmet Bondlanguage-CORRECTANSWER-AtaminimumBondshouldcontainthe totaldollaramountlengthofthebondrequirementsfornoticeofthefactorlack ofmaintenanceandbondenforcement Filingprocedures-CORRECTANSWER-Constructionlawcontractual relationshipsgovernthebondclaimsprocessthefilingprocessasoutlinedinthe bond Projectchanges-CORRECTANSWER-Unlessspecificallyoutlinedinthebonds agreementtheSuretycompanywillnotcoverchangestotheoriginalcontractin mostcasesrequestforadditionalcoveragemustbemadeandthebonding companymustbenotifiedofthecontractchanges Paymentintheeventofdefault-CORRECTANSWER-Intheeventofdefault Suretymayprovideadditionalfinancesarrangeforanewcontractororhire subcontractorstocompletetheworkorpayouttheamountofthebond Milleractof1935-CORRECTANSWER-Currentlawrequiringperformanceand paymentbondonafederalconstructionprojectvaluegreaterthan$100,000 Milleractamounts-CORRECTANSWER-50%oncontractslessthan1million 40%ofcontractsbetweenoneand5million2.5millionpaymentbondfor contractsinexcessof5million LittleMilleract-CORRECTANSWER-SimilartotheMilleractforpublicworks projects ConstructionIndustrypaymentprotectionactof1999-CORRECT ANSWER-Addendumtothemilleractit'spurposeistoimprovepaymentbond protectionsforpersonswhofurnishlaborormaterialforuseonfederal constructionprojectstohelpsubcontractorswithadequateprotection
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