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
Environmental Liabilities at Agriculture and Farming Properties
The most common environmental and regulatory exposures encountered at agriculture and farming properties include the following:
Addressing Bullying and Cyberbullying
Bullying and cyberbullying remain prevalent issues in schools, posing significant challenges to student safety and well-being. As educators and administrators, it's essential to address these issues proactively and create a safe and supportive environment for all students.
National Work Zone Awareness Week Takes Place April 15-19
The National Work Zone Awareness Week (NWZAW) will take place April 15-19, 2024, in conjunction with National Occupational Research Agenda’s (NORA) Construction Stand-down to Prevent Struck-by Incidents event. In 2021, 956 people died in work zones, according to the NHTSA FARS data. Also in 2021, 108 highway worker occupational fatalities occurred in road construction sites, based on BLS data. Further data is available on WorkZoneSafety.org.