Sureties and bonding companies play an important role in modern construction projects. Bonds, Subcontractor Default Insurance, and other similar insurance products are increasingly being required on Georgia construction projects. Whether you are working on increasing a bonding capacity or you need to claim against another’s performance bond or payment bond or defend your own bond claim, it is vital to have the right construction law firm working with you as a partner. The Cobb Law Group’s construction attorneys have represented sureties as well as owners, contractors and subcontractors in all of their work with sureties and insurance companies so we understand the legal and the impact these matters can have on your business.
Sureties provide performance bonds which protect the project owner in the event that the contractor defaults on its work or is otherwise unable to complete the project, and sureties provide payment bonds which protect subcontractors and suppliers in the event that the contractor is unable to make payment for the work rendered. Although such bonds are frequently used on private construction projects, they are not required by law; in the public sector, however, the Federal Miller Act and Georgia’s Little Miller Acts require public entities to obtain payment bonds to secure payment to subcontractors and suppliers downstream.
A thorough understanding and experience with the intricacies of surety and bonding law is essential for construction professionals at every tier. Project Owners and Developers should understand the advantages of including bonding requirements on their projects as well as the increase to costs. Similarly, general contractors and subcontractors need to understand their obligations to the surety, their obligations to those down-stream, and understand their bonding capacity. In fact, contractors can often find themselves in trouble if they do not understand how to respond to claim against their bond. The construction lawyers at the Cobb Law Group have decades of experience working with each tier and the various issues which result from Georgia insurance law and bonding law.
We regularly represent our clients in making claims against their performance bonds as well as their payment bonds, and we have work hard to build strategic relationships with our firm and the sureties with whom we work. In addition, we regularly find ourselves on the other side of the bar as we defend contractors and subcontractors when others have made claims against their performance bonds or payment bonds. We have successfully resolved our client’s claims through negotiation, mediation, arbitration and bond claim litigation. We understand whether Federal law applies or which Georgia Statutes apply in a particular case. We understand that bonding capacity is determined and how claims impact bonding on future jobs. Thus, we are able to provide our clients with an understanding of the various short-term goals and the long-term goals they need to survive.
Our attorneys are not general practitioners; instead, our entire firm is dedicated to the practice of Georgia construction law. Consequently, our clients find our knowledge of the construction industry and our legal acumen to give them a advantage when working with (or against) a surety. When applying for bonding, the process can be daunting. We understand the risks involved, and we evaluate them and help you understand them clearly. Whether it involves indemnifications, personal guaranties, letters of credit or pledging of assets, we can guide our clients through the process and, if necessary, the claims.