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
Imminent Dangers on the Job Site – Reducing Your Risk of Injury at Work
An imminent danger is a workplace hazard that puts you at an immediate risk of death or serious physical harm. It may be a safety hazard, such as an unstable trench or an exposed electrical wire, or it may be a health hazard, such as toxic substances, dangerous fumes, dusts or gases. These dangers could cause irreversible physical harm, death or reduced physical or mental performance.
Winter Weather Oil and Gas Safety Tips
To prevent injuries and illness as a result of winter weather, it’s important to learn about the causes, symptoms, and safety considerations to take so you are prepared to handle winter’s worst. According to the Occupational Safety and Health Administration (OSHA), there is no exact temperature at which the environment becomes hazardous. Instead, factors such as low temperatures, wind speed, and wetness contribute to cold-induced injuries and illness.
Monitoring to Prevent Patterns of Violations
To prevent injuries and illness as a result of winter weather, it’s important to learn about the causes, symptoms, and safety considerations to take so you are prepared to handle winter’s worst. According to the Occupational Safety and Health Administration (OSHA), there is no exact temperature at which the environment becomes hazardous. Instead, factors such as low temperatures, wind speed, and wetness contribute to cold-induced injuries and illness.