Who pays for Bonds, Ballast 49-8

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3 comments

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    Kristin Bogaard (Edited )

    Hi Nasheet, 

    Per AIA Document A701 Instructions to Bidders:

    Article 7 Performance Bond and Payment Bond

    "7.1.2  If the furnishing of such bonds is stipulated in the Bidding Documents, the cost shall be included in the Bid.  If the furnishing of such bonds is required after receipt of bids and before execution of the Contract, the cost of such bonds shall be added to the Bid in determining the Contract Sum."

    In summary, the contractor is responsible for furnishing the P&P bonds, however, they are ultimately paid for by the Owner.

    I hope this helps!

    Kristin

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    Nasheet Rumy

    Ok thank you!!

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    Kristin Bogaard

    No problem :) 

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