Virtually all public construction projects and many private ones require that contractors provide surety bonds guaranteeing the performance of the work and/or the payment of sub-tier contractors and suppliers. Additionally, a license or “registration” bond is required of all contractors in Washington state. Many people confuse surety bonds with insurance. However, a surety bond is different from insurance in that, while the surety agrees to guarantee the obligation stated in the bond, the contractor remains liable on the underlying contract. Moreover, the contractor is liable to the surety for any loss the surety incurs as a result of issuing the bond.
At Durkee & Hennessey, our attorneys have extensive experience representing clients in matters involving license, bid, performance and payment bonds. We review and advise clients regarding the “General Indemnity Agreement” required by sureties at the time a bond is issued. Additionally, attorneys with the firm have prosecuted and defended hundreds of surety bond claims on behalf of claimants, principals and sureties.