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
Share This Story
Related Blogs
Leadership and Creating a Strong Safety Culture
The last two years have been challenging, to say the least, but as our economy continues to stabilize, we are already seeing hiring pressures mount throughout industry. With an increase in hiring comes the potential for an increase in workplace injuries. As we launch into 2022, there is no better time than now for business leaders to focus on systematic accident prevention by adopting a strong and proactive safety culture and beginning a transformation to a culture where everyone believes that all injuries can be prevented.
Education Risk Insights: Data Security and Higher Education
Learn more about ways for institutions of higher education to keep students' private information secure while upholding the value of free exchange of ideas.
Common Exposures For Financial Institutions
As a financial institution, your customers trust you with their money. This article provides an overview of common financial intuition exposures, helping you identify potential blind spots in your risk management and insurance programs.