fbpx
Pay Now
Client Login

EXPEDITED DISPUTE RESOLUTION BONDS: WHAT YOU NEED TO KNOW

Did you know that bonds are required to help guarantee performance, payment, and maintenance terms on a project to the owner/obligee? When bonds are in place, everything should run smoothly in the event of the dreaded bond claim right? Wrong. Typically, bond claims can take many weeks, if not months, for a resolution, regardless of the outcome.

The extended delay in resolution can cause project stoppage, incur damages, and extend the final delivery of the project to the owner. Most bond forms don’t specifically address a timeframe or action plan for dispute resolution. Over the last couple of years the surety industry has looked to help in this issue by adopting what is known as an Expedited Dispute Resolution bond, more commonly known as an EDR bond. The EDR’s primary goal is expedite disputes. It defines time frames in which the surety has to investigate, whether performance or payment related, typically in less than 30-45 days. This can help avoid nasty penalties and delays from the owner and it ultimately keeps projects running on schedule as all parties involved are to continue work throughout the process. It’s worth noting that EDR bonds are not right for every project, but if utilized correctly, are a very effective solution for owners, general contractors, and subcontractors in the event there is a claim.

About the Author

Dillon Rosenhamer
Dillon Rosenhamer

Share This Story

Stay Updated

Subscribe to the INSURICA blog and receive the latest news direct to your inbox.

Subscribe to the blog

Related Blogs

5 Restrictions in Group LTD Plans

March 24th, 2023|Blog, Employee Benefits, Trending|

2023 promises to bring sweeping changes for employers and the employee experience. A host of new labor laws, rules, and regulations are set to come into effect in the coming year, with a focus on wage equity, expanded healthcare benefits, and other initiatives.

New Labor Policies to be Aware of in 2023

March 23rd, 2023|Blog, Employee Benefits, Trending|

2023 promises to bring sweeping changes for employers and the employee experience. A host of new labor laws, rules, and regulations are set to come into effect in the coming year, with a focus on wage equity, expanded healthcare benefits, and other initiatives.

ESG Dept. of Labor Rule Under Fire

March 22nd, 2023|Blog, Employee Benefits|

The Department of Labor's (DOL) new rule on "Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights," which allows for consideration of environmental, social, and governance (ESG) factors when making investment decisions, has come under fire from multiple fronts.

Go to Top