Legal Question in Construction Law in New York

Performance Bond-Abatement Contractor

What language should I include in a Performance Bond and in a Payment Bond issued to our Abatement Subcontractor? What language should be stricken ? What language can I insert to cover any extended liability we as a GC have with respect to the Remedial Subcontractor's work?


Asked on 1/22/01, 11:20 am

2 Answers from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Performance Bond-Abatement Contractor

Performance and Payment bonds are usually issued by a banking institution and not by the General Contractor. The bank is usually the entity that insists on the specific language.

With regard to extended liability as to the subcontractor's work, I suggest a warranty provision is placed in the contract together with an arbitration clause.

Mike

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Answered on 2/15/01, 8:26 am
Robert R. Groezinger GroezingerLaw P.C.

Re: Performance Bond-Abatement Contractor

I received your post on 2-15-2001.

I have done much litigation/trial work arising out of construction accidents. Unfortunately, I do not know how the existing contract is written. Also, he is your sub...are you the gc? Are you subject to any other contract. Is there an OCP insurance policy currently in effect. Many questions need to be answered. This is not as simple as it sounds. Sorry.

Good Luck

RRG

RRG

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Answered on 2/16/01, 5:41 pm


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