CA Practice question

CA Practice question

Postby Yohai » Tue Oct 01, 2019 3:30 pm

Hi,

If a contractor has a performance bond for 100% of the contract documents = 500,000 but the project costs is 1,000,000 , the contractor defaulted and no where to be seen. who pays the difference?
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Re: CA Practice question

Postby Coach » Tue Oct 01, 2019 4:33 pm

Why the discrepancy? If contract was executed and then COs increased the cost, bond should have also increased along the way.
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Re: CA Practice question

Postby Yohai » Sun Oct 06, 2019 4:13 pm

So the surety will pay the difference?
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Re: CA Practice question

Postby Coach » Mon Oct 07, 2019 2:11 am

If additional premium was paid, yes. If not, no.
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