https://www.designingbuildings.co.uk/w/index.php?action=history&feed=atom&title=SuretySurety - Revision history2026-05-17T23:31:10ZRevision history for this page on the wikiMediaWiki 1.17.4https://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=179702&oldid=prevDesigning Buildings at 08:35, 28 October 20202020-10-28T08:35:24Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Subcontractor default insurance (SDI).</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Subcontractor default insurance (SDI).</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Roles_/_services]]</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">[[Category:DCN_Definition]] [[Category:DCN_Guidance]] </ins>[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Roles_/_services]]</div></td></tr>
</table>Designing Buildingshttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=117188&oldid=prevEditor at 15:55, 1 October 20182018-10-01T15:55:37Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>However, this is generally a limited provision; if amendments create new or more onerous obligations, rather than simply varying the existing obligations, then permission may need to be obtained in advance.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>However, this is generally a limited provision; if amendments create new or more onerous obligations, rather than simply varying the existing obligations, then permission may need to be obtained in advance.</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">= Find out more =</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>= Related articles on Designing Buildings Wiki =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div> </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">==</del>= Related articles on Designing Buildings Wiki <del class="diffchange diffchange-inline">==</del>=</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Agency.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Agency.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds v guarantees.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds v guarantees.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Collateral warranties.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Collateral warranties.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Duty.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Escrow.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Escrow.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Holdback.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Holdback.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=112612&oldid=prevEditor at 12:25, 26 July 20182018-07-26T12:25:30Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Holdback.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Holdback.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* [[Indemnity_clauses_in_design_and_construction_contracts|Indemnity clauses]].</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* [[Indemnity_clauses_in_design_and_construction_contracts|Indemnity clauses]].</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Mechanic’s lien.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Miller Act.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Miller Act.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* On-demand bonds.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* On-demand bonds.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=112422&oldid=prevEditor at 15:42, 25 July 20182018-07-25T15:42:58Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Performance bond.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Performance bond.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Retention.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Retention.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Subcontractor default insurance (SDI).</ins></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Roles_/_services]]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Roles_/_services]]</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=112374&oldid=prevEditor at 12:13, 25 July 20182018-07-25T12:13:16Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Holdback.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Holdback.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* [[Indemnity_clauses_in_design_and_construction_contracts|Indemnity clauses]].</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* [[Indemnity_clauses_in_design_and_construction_contracts|Indemnity clauses]].</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Miller Act.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* On-demand bonds.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* On-demand bonds.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Parent company guarantee.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Parent company guarantee.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=112364&oldid=prevEditor at 11:25, 25 July 20182018-07-25T11:25:55Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The risk of contractor insolvency or default is always a concern for construction clients. It can have a serious knock-on effect on the whole project, and can, in worse case scenarios, stop a project completely.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The risk of contractor insolvency or default is always a concern for construction clients. It can have a serious knock-on effect on the whole project, and can, in worse case scenarios, stop a project completely.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>A surety<del class="diffchange diffchange-inline">, </del>(sometimes referred to as a bondsman or guarantor), takes responsibility for another party's performance. In the case of construction contracts, a surety may undertake to make a payment to the client (or undertake some other corrective action) in the event of non-performance of the contractor. Generally, a surety is a bank, bond company or insurance company.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>A surety (sometimes referred to as a bondsman or guarantor), takes responsibility for another party's performance. In the case of construction contracts, a surety may undertake to make a payment to the client (or undertake some other corrective action) in the event of non-performance of the contractor. Generally, a surety is a bank, bond company or insurance company.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>This guarantee, sometimes referred to as a 'performance bond' or 'surety bond', is generally a requirement of the contract, and typically provides that in the event of a contractor default, the surety guarantees to pay the client’s damages, say up to a maximum of 10% of the contract sum. This payment can enable the client to overcome the difficulties caused by the non-performance, such as finding a new contractor to complete the works.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>This guarantee, sometimes referred to as a 'performance bond' or 'surety bond', is generally a requirement of the contract, and typically provides that in the event of a contractor default, the surety guarantees to pay the client’s damages, say up to a maximum of 10% of the contract sum. This payment can enable the client to overcome the difficulties caused by the non-performance, such as finding a new contractor to complete the works.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=108065&oldid=prevEditor at 13:45, 4 June 20182018-06-04T13:45:11Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The risk of contractor insolvency or default is always a concern for construction clients. It can have a serious knock-on effect on the whole project, and can, in worse case scenarios, stop a project completely.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The risk of contractor insolvency or default is always a concern for construction clients. It can have a serious knock-on effect on the whole project, and can, in worse case scenarios, stop a project completely.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>A surety, (sometimes referred to as a bondsman or guarantor), takes responsibility for another <del class="diffchange diffchange-inline">parties </del>performance. In the case of construction contracts, a surety may undertake to make a payment to the client (or undertake some other corrective action) in the event of non-performance of the contractor. Generally, a surety is a bank, bond company or insurance company.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>A surety, (sometimes referred to as a bondsman or guarantor), takes responsibility for another <ins class="diffchange diffchange-inline">party's </ins>performance. In the case of construction contracts, a surety may undertake to make a payment to the client (or undertake some other corrective action) in the event of non-performance of the contractor. Generally, a surety is a bank, bond company or insurance company.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>This guarantee, sometimes referred to as a 'performance bond' or 'surety bond', is generally a requirement of the contract, and typically provides that in the event of a contractor default, the surety guarantees to pay the client’s damages, say up to a maximum of 10% of the contract sum. This payment can enable the client to overcome the difficulties caused by the non-performance, such as finding a new contractor to complete the works.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>This guarantee, sometimes referred to as a 'performance bond' or 'surety bond', is generally a requirement of the contract, and typically provides that in the event of a contractor default, the surety guarantees to pay the client’s damages, say up to a maximum of 10% of the contract sum. This payment can enable the client to overcome the difficulties caused by the non-performance, such as finding a new contractor to complete the works.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Collateral warranties.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Collateral warranties.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Escrow.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Escrow.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Holdback.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* [[Indemnity_clauses_in_design_and_construction_contracts|Indemnity clauses]].</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* [[Indemnity_clauses_in_design_and_construction_contracts|Indemnity clauses]].</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* On-demand bonds.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* On-demand bonds.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=97258&oldid=prevEditor at 15:42, 1 February 20182018-02-01T15:42:31Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=== Related articles on Designing Buildings Wiki ===</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=== Related articles on Designing Buildings Wiki ===</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Agency.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bid bond.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bid bond.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=95302&oldid=prevEditor at 15:37, 10 January 20182018-01-10T15:37:28Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Obligee completion - The surety opts to let the obligee (the client) complete the project. This strategy can be adopted where the client’s plans for completion are reasonable and do not open the surety to further risks.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Obligee completion - The surety opts to let the obligee (the client) complete the project. This strategy can be adopted where the client’s plans for completion are reasonable and do not open the surety to further risks.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">NB </del>Bonds can also be required from other parties to a construction contract, such as consultants or suppliers.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>Bonds can also be required from other parties to a construction contract, such as consultants or suppliers.</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">NB </del>As construction contracts are generally subject to change during the course of a project, the liability of surety will generally not be removed by alterations, variations or waivers of the underlying contract. These provisions are sometimes referred to as ‘indulgence clauses’, and mean the contractor does not have to continually seek permission from the surety whenever amendments need to be made. However, this is generally a limited provision; if amendments create new or more onerous obligations, rather than simply varying the existing obligations, then permission may need to be obtained in advance.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>As construction contracts are generally subject to change during the course of a project, the liability of surety will generally not be removed by alterations, variations or waivers of the underlying contract. These provisions are sometimes referred to as ‘indulgence clauses’, and mean the contractor does not have to continually seek permission from the surety whenever amendments need to be made.</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>However, this is generally a limited provision; if amendments create new or more onerous obligations, rather than simply varying the existing obligations, then permission may need to be obtained in advance.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>= Find out more =</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>= Find out more =</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=== Related articles on Designing Buildings Wiki ===</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=== Related articles on Designing Buildings Wiki ===</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* Bid bond.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds v guarantees.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Bonds v guarantees.</div></td></tr>
</table>Editorhttps://www.designingbuildings.co.uk/w/index.php?title=Surety&diff=66650&oldid=prevDesigning Buildings at 14:53, 9 January 20172017-01-09T14:53:51Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>A surety, (sometimes referred to as a bondsman or guarantor), takes responsibility for another parties performance. In the case of construction contracts, a surety may undertake to make a payment to the client (or undertake some other corrective action) in the event of non-performance of the contractor. Generally, a surety is a bank, bond company or insurance company.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>A surety, (sometimes referred to as a bondsman or guarantor), takes responsibility for another parties performance. In the case of construction contracts, a surety may undertake to make a payment to the client (or undertake some other corrective action) in the event of non-performance of the contractor. Generally, a surety is a bank, bond company or insurance company.</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>This guarantee, sometimes referred to as a 'performance bond' or 'surety bond', typically provides that in the event of a contractor default, the surety guarantees to pay the client’s damages, say up to a maximum of 10% of the contract sum. This payment can enable the client to overcome the difficulties caused by the non-performance, such as finding a new contractor to complete the works.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>This guarantee, sometimes referred to as a 'performance bond' or 'surety bond', <ins class="diffchange diffchange-inline">is generally a requirement of the contract, and </ins>typically provides that in the event of a contractor default, the surety guarantees to pay the client’s damages, say up to a maximum of 10% of the contract sum. This payment can enable the client to overcome the difficulties caused by the non-performance, such as finding a new contractor to complete the works.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The cost of the bond is usually borne by the contractor, although this is likely to be reflected in the contractor’s tender price.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The cost of the bond is usually borne by the contractor, although this is likely to be reflected in the contractor’s tender price.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Contractor assistance - The surety provides the defaulting contractor with additional resources and financial assistance. This can be appropriate where there is a pre-existing relationship between the contractor and the surety.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Contractor assistance - The surety provides the defaulting contractor with additional resources and financial assistance. This can be appropriate where there is a pre-existing relationship between the contractor and the surety.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Obligee completion - The surety opts to let the obligee (the client) complete the project. This strategy can be adopted where the client’s plans for completion are reasonable and do not open the surety to further risks.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>* Obligee completion - The surety opts to let the obligee (the client) complete the project. This strategy can be adopted where the client’s plans for completion are reasonable and do not open the surety to further risks.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">NB Bonds can also be required from other parties to a construction contract, such as consultants or suppliers.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>NB As construction contracts are generally subject to change during the course of a project, the liability of surety will generally not be removed by alterations, variations or waivers of the underlying contract. These provisions are sometimes referred to as ‘indulgence clauses’, and mean the contractor does not have to continually seek permission from the surety whenever amendments need to be made. However, this is generally a limited provision; if amendments create new or more onerous obligations, rather than simply varying the existing obligations, then permission may need to be obtained in advance.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>NB As construction contracts are generally subject to change during the course of a project, the liability of surety will generally not be removed by alterations, variations or waivers of the underlying contract. These provisions are sometimes referred to as ‘indulgence clauses’, and mean the contractor does not have to continually seek permission from the surety whenever amendments need to be made. However, this is generally a limited provision; if amendments create new or more onerous obligations, rather than simply varying the existing obligations, then permission may need to be obtained in advance.</div></td></tr>
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