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A Tip for Performance Bond Obligees: for Maximum Protection, Obtain Increase Riders with Change Orders



by Lewis Roberts P.L.L.C. - Raleigh Office

May 17, 2012

Previously published on May 17, 2012

It's tempting to assume that change orders automatically increase the penal sum of a performance bond that expressly waives notice of contract modifications, but pursuant to a 1992 case out of the U.S. Bankruptcy Court for the Eastern District of Tennessee, that assumption might be misplaced.


 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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