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Is using a surety bond common practice?

CaliforniaBond ClaimsPayment BondPerformance Bond

I'm a subcontractor working on a public works project and we have been referred to a surety bond company to obtain a bond for this job. We noticed there is an indemnity agreement that binds both our company and owners in the event the bond is enforced. Is this common practice? Is there any other alternative to surety bonds?

1 reply

Attorney at Carlton & Alberola
| 93 reviews
Feb 9, 2021
As a contractor on a public works project, except if very limited circumstances, the GC will need performance and payment bonds. Sometimes GCs require the subs to do the same, but it is worth trying to negotiate the point. In fact, you should insist that the GC pay the premium, if it insists on a bond from you, its sub.
Carlton & Alberola and/or Andrew Carlton have not been retained by the recipient of the above comment and, moreover, the above comment does not
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