Jump to content

Search the Community

Showing results for tags 'Bond'.

  • Search By Tags

    Type tags separated by commas.
  • Search By Author

Content Type


Forums

  • Instructions and Terms of Use
    • Terms Of Use
    • Before You Register, Before You Post, Instructions for Writing Your Question
  • Contracting Forum
    • What Happened?
    • Polls
    • For Beginners Only
    • About The Regulations
    • COVID-19 And Its Effect on Contracting
    • Contracting Workforce
    • Recommended Reading
    • Contract Award Process
    • Contract Pricing Including CAS & Allowable Costs
    • Contract Administration
    • Schedules, GWACS, MACs, IDIQs
    • Subcontracts & Subcontract Management
    • Small Business, Socioeconomic Programs
    • Proposed Law & Regulations; Legal Decisions

Blogs

  • The Wifcon Blog
  • Don Mansfield's Blog
  • Government Contracts Blog
  • Government Contracts Insights
  • Emptor Cautus' Blog
  • SmallGovCon.com
  • The Contractor's Perspective
  • Government Contracts Legal Forum
  • NIH NITAAC Blog
  • NIH NITAAC Blog

Product Groups

There are no results to display.

Categories

  • Rules & Tools
  • Legal Opinions
  • News

Find results in...

Find results that contain...


Date Created

  • Start

    End


Last Updated

  • Start

    End


Filter by number of...

Joined

  • Start

    End


Group


AIM


MSN


Website URL


ICQ


Yahoo


Jabber


Skype


Location


Interests

Found 1 result

  1. Our office had a construction contractor (I'll call them "Acme") fail to perform, so we did a termination for default. They had bonds issued from a bonding company (I'll call them "Bondo"). We then attempted to get Bondo to get the work completed. Bondo started discussing with us and then when they discovered that the amount was around $800k, they simply refused to communicate further. Our agency's attorney spoke with a DOJ attorney who advised that the only costs we would be able to recover are reprocurement costs, which will probably only be a few thousand dollars. The DOJ attorney said that Bondo probably did an analysis and decided it would be cheaper for them to not perform and only pay reprocurement costs than it would be for them to complete the work. There are more details (including the Government paying Acme for work not completed), but I don't want to make this question longer than it already is. My question is this. What good is the performance bond if the surety can simply decline to perform? The Government pays for these bonds (as the contractors roll that cost into their bid) and from this experience it seems like a waste of money. I've never had a bonding company do this so this is new territory for me. Is there a step we may be missing? If not, I think I need to go into the bonding business. Seems like a very low-risk business if all they can hit me up for is reprocurement costs!
×
×
  • Create New...