Topic Thread

1.  Bonded Projects - Releases

Posted 9 days ago

​I've been out of the industry for about 10 years and a lot of things have changed.  Could someone enlighten me about getting bonded projects "released" from your bonding company? I may be mistaken but I thought the projects themselves were bonded and once we had a final release letter from the Owner we could also get a "release form" from the bonding company to release us from those obligations.  Our current bond company is informing us that they don't provide release forms because they have bonded the company not just the projects.  I guess I need a little more education on bonds!
Anyone have a good source?




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Barbara Laden MBA
Controller
Integrity General Contractors, LLC
Dallas TX
(972) 886-5519
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2.  RE: Bonded Projects - Releases

Posted 8 days ago
​Barbara, your understanding of how the process works is accurate.  I'm available to discuss further.  It appears the misunderstanding lies with your surety.

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NIcholas Newton
President
Newton Bonding
Stillwater MN
(651) 342-1480
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3.  RE: Bonded Projects - Releases

Posted 8 days ago

Barbara,  our agency provides releases for us.  You are welcome to reach out to them for clarity.  See my contact below.

 

Linda Stalder <LStalder@mnhins.com>

 

Best Regards,

 

INFINITY SOUND

MARK MACY
INFINITY SOUND
CONTROLLER
Phone: (972) 206-0001
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4.  RE: Bonded Projects - Releases

Posted 8 days ago

Absolutely.  This is our surety agent. 

 

Thanks

 


 

Wendy Byerley
Director, Contract Controls
ALLAN MYERS

O:    610.584.3430
M:   610.960.3081
W:   allanmyers.com


Proud to be voted 2017 Mid-Atlantic Contractor of the Year by Engineering News-Record.

 

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5.  RE: Bonded Projects - Releases

Posted 7 days ago
Barbara,

Since we may have others reading this thread then it would be good to take the time to explain further. The release you are referring to is actually called a Consent of Surety to Final Payment. We use the AIA G707 form that you can quickly find with a web search. Consents of surety can be used for other purposes, including payment for stored materials and reduction or partial payment of retainage. The intent of any consent of surety is to protect the obligee, the party you are contracted with, from forfeiting any rights under the bond due to taking some action, typically payment to the principal (you). The consent gives them permission to perform the action without risking the bond's protection. Consents are usually very easy to get unless there are existing claims or premium still owed to the surety. In those cases the surety or agent could use the consent as leverage against you.

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Eric Lesch
Principal
PCL Contract Bonding Agency
Irving TX
(972) 459-4749
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6.  RE: Bonded Projects - Releases

Posted 7 days ago
Thanks to all.  I think we need to "shop" or surety and it looks like I have some good leads!


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Barbara Laden MBA
Controller
Integrity General Contractors, LLC
Dallas TX
(972) 886-5519
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