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 new 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 fifth FAQ and response:
| I have a general contractor client who needs to make a performance bond claim on a subcontract bond. What guidance can I give him/her?
Advise the general contractor client to ascertain the name and contact information of the surety on the subcontractor’s performance bond. In addition to the bond itself, ready sources of contact information for the surety include the surety company’s website and the United States Department of Treasury List (Circular 570), available at http://www.publicdebt.treas.gov/fsreports/ref/suretyBnd/c570_a-z.htm.
Suggest that the general contractor may want to seek legal advice from counsel who can assist with preparing a documented, written claim notice to the surety as soon as possible in order to preserve the general contractor’s rights. Avoid discussing the specifics of any investigation that may be conducted by the surety or any likely outcome of any investigation that may be conducted by the surety. It is important that you limit your role to that of a facilitator. |
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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