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Performance Bonds

By: Sarah Riedl, Joseph Riegerix, Bennett Rainey, and Evan Rossi Summary: An introduction to the basics of the private performance bond relationship in the construction law context. This presentation outlines the risks and obligations incurred by each of the parties to a performance bond agreement: The principal contractor, the surety, the obligee owner, and the subcontractor. We discuss how attorneys can negotiate to get the most favorable outcomes for their clients. We also address defenses that each party may use to decrease its risk.