The NASBP document titled “Frequently Asked Questions from Bond Producers About Their Role in the Contract Bond Claims Process” is formatted into FAQs and general guidance responses for bond producers when they are faced with the inevitable and various questions from obligees, principals, claimants, attorneys, and the press. These questions and answers do not provide legal advice, but they do provide illustrative guidance to bond producers.
If you haven’t yet read this NASBP resource, you can find it on the NASBP website in the Producer’s Toolbox or you can access it by clicking here.
In order to highlight this new educational tool, NASBP has been featuring in each issue of Pipeline one of the FAQs and the general guidance response to that question. Below is the eighth FAQ and response:
| I received a call from a supplier on a project wanting a copy of the payment bond of my general contractor client before shipping materials to the job. How do I handle this? Suggest that the supplier contact the general contractor or the bond obligee directly and request a copy of the fully executed payment bond. Also, contact your client and inform him/her that the supplier contacted you and request instructions from your client. If so directed by your client, you may verify the bond over the phone and provide the name of the surety company and the bond number for the supplier to conduct his/her own due diligence. In some, but not all, circumstances, the general contractor or the bond obligee may have a legal obligation to furnish a copy of the payment bond to perspective subcontractors and suppliers or to subcontractors and suppliers performing work or furnishing materials on a project. |
Be on the lookout for a highlighted FAQ and response from this NASBP document in the next issue of Pipeline. NASBP would be very pleased to hear your comments on these FAQs and your suggestions for other FAQs to include in a future version of the FAQs. Share your thoughts about this document at info@nasbp.org.
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