Bond Demand In Construction In Kings
Category:
State:
Multi-State
County:
Kings
Control #:
US-00415BG
Format:
Word;
Rich Text
Instant download
Description
A Bond is a document with which one party promises to pay another within a specified amount of time. The term "demand" means that the principal plus any interest is due on demand by the bondholder rather than on a specific date. Bonds are used for many things, including borrowing money or guaranteeing payment of money. A bond can be given to secure performance of particular obligations, including the payment of money, or for purposes of indemnification. The validity of a "private" bond, payable upon demand, is determined by the same principles applicable to contracts generally. The purpose of the bond must not be contrary to public policy; it must be supported by a valuable consideration; and there must be a clear designation of the obligor and the obligee. A bond procured through fraud or duress may be unenforceable, but mistake on the part of the obligor as to the contents of a bond, or its legal effect, is not a defense to enforcement of the bond.
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Contract bonds, also commonly called construction bonds, guarantee that the construction will be completed according to the terms of the contract. Contractors, suppliers, and others that work in the construction industry use this form to file a claim against the bond on a public project.King Risk Partners offers commercial surety bond and license services for businesses on the east coast and beyond. Com or fax to . Learn about construction payment bonds and how they protect project owners, contractors and suppliers from financial risk. To get started on your bond line, contact your insurance agent to begin the process. We've put together the following tips to aid you in securing construction surety bonds or increasing your bonding capacity. Clause 3.1 of the bond set out the three requirements of a valid demand, which can be summarised as follows: Notice in writing of any default. Owners of large projects often require four types of construction bonds: a bid bond, a performance bond, a payment bond, and a maintenance bond.
