Illinois Indemnification of Surety on Contractor's Bond by Subcontractor

• Category: Contracts - Indemnification
• State: Multi-State
• Control #: US-13381BG
• Format: Word; Rich Text

Description

To indemnify means to reimburse another for a loss suffered because of a third party's or one's own act or default. It can also refer to a promise to reimburse another for such a loss or to give another security against such a loss. Illinois Indemnification of Surety on Contractor's Bond by Subcontractor is a legal provision that protects the surety involved in a construction project in the state of Illinois. When a general contractor enters into a contract with a subcontractor, the subcontractor is often required to secure a bond to ensure the completion of their obligations. This bond is typically issued by a surety company. The Indemnification of Surety on Contractor’s Bond is a clause that outlines the subcontractor's responsibility to indemnify the surety in the event of a default or failure to meet contractual obligations. In simple terms, it means that the subcontractor agrees to reimburse the surety for any losses incurred as a result of their non-performance or non-payment. By including this clause in the contract, the surety is protected against financial burdens arising from the subcontractor's failure to fulfill their obligations. It provides an additional layer of security to the surety, as they can seek reimbursement from the subcontractor in case they have to pay any claims, damages, or expenses on behalf of the subcontractor. Keywords: Illinois, indemnification, surety, contractor's bond, subcontractor, legal provision, construction project, general contractor, bond, obligations, surety company, default, non-performance, non-payment, clause, contract, reimbursement, claims, damages, expenses. Different types of Illinois Indemnification of Surety on Contractor's Bond by Subcontractor may include: 1. Performance Bond Indemnification: This type of indemnification specifically relates to the performance bond obtained by the subcontractor. It ensures that the subcontractor is responsible for reimbursing the surety in case of non-performance or failure to meet project requirements. 2. Payment Bond Indemnification: Payment bond indemnification is applicable when a subcontractor fails to make payments to suppliers, subcontractors, or laborers. Subcontractors are required to reimburse the surety for any expenses incurred due to their default in payment obligations. 3. Liability Bond Indemnification: This type of indemnification refers to the subcontractor's responsibility for indemnifying the surety in case of any liability claims or legal disputes arising from their actions during the construction project. 4. Bid Bond Indemnification: Bid bond indemnification protects the surety if the subcontractor withdraws from the project after winning the bid or fails to enter into a contract. The subcontractor is bound to reimburse the surety for any costs associated with the bid withdrawal or failure to proceed. These are just a few examples of the different types of Illinois Indemnification of Surety on Contractor's Bond by Subcontractor. It is essential for subcontractors to carefully review and understand the specific indemnification clauses mentioned in their contract to ensure compliance and avoid any potential legal consequences.

Illinois Indemnification of Surety on Contractor's Bond by Subcontractor is a legal provision that protects the surety involved in a construction project in the state of Illinois. When a general contractor enters into a contract with a subcontractor, the subcontractor is often required to secure a bond to ensure the completion of their obligations. This bond is typically issued by a surety company. The Indemnification of Surety on Contractor’s Bond is a clause that outlines the subcontractor's responsibility to indemnify the surety in the event of a default or failure to meet contractual obligations. In simple terms, it means that the subcontractor agrees to reimburse the surety for any losses incurred as a result of their non-performance or non-payment. By including this clause in the contract, the surety is protected against financial burdens arising from the subcontractor's failure to fulfill their obligations. It provides an additional layer of security to the surety, as they can seek reimbursement from the subcontractor in case they have to pay any claims, damages, or expenses on behalf of the subcontractor. Keywords: Illinois, indemnification, surety, contractor's bond, subcontractor, legal provision, construction project, general contractor, bond, obligations, surety company, default, non-performance, non-payment, clause, contract, reimbursement, claims, damages, expenses. Different types of Illinois Indemnification of Surety on Contractor's Bond by Subcontractor may include: 1. Performance Bond Indemnification: This type of indemnification specifically relates to the performance bond obtained by the subcontractor. It ensures that the subcontractor is responsible for reimbursing the surety in case of non-performance or failure to meet project requirements. 2. Payment Bond Indemnification: Payment bond indemnification is applicable when a subcontractor fails to make payments to suppliers, subcontractors, or laborers. Subcontractors are required to reimburse the surety for any expenses incurred due to their default in payment obligations. 3. Liability Bond Indemnification: This type of indemnification refers to the subcontractor's responsibility for indemnifying the surety in case of any liability claims or legal disputes arising from their actions during the construction project. 4. Bid Bond Indemnification: Bid bond indemnification protects the surety if the subcontractor withdraws from the project after winning the bid or fails to enter into a contract. The subcontractor is bound to reimburse the surety for any costs associated with the bid withdrawal or failure to proceed. These are just a few examples of the different types of Illinois Indemnification of Surety on Contractor's Bond by Subcontractor. It is essential for subcontractors to carefully review and understand the specific indemnification clauses mentioned in their contract to ensure compliance and avoid any potential legal consequences.