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Helping Your Clients in a Rapidly Changing Insurance Market Part 1

ISTOCK.COM/PHOTOTECHNO and ETIAMMOS By David B. Dolnick This article was completed in early May 2020. Changes related to the COVID-19 crisis and construction and insurance industries are still occurring; some data in this article may have changed by the time of publication. In the world of surety, commercial insurance may not be a primary focus; and dealing with insurance-related issues ...

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Helping Your Clients In a Rapidly Changing Insurance Market Part 2—Checklist to Share with Clients

ISTOCK.COM/CYBRAIN and BRIANAJACKSON By David B. Dolnick In the first part of this discussion (See SBQ Web Exclusive Article Helping Your Clients in a Rapidly Changing Insurance Market), we took a look at what’s happening with commercial insurance rates and at prior market cycles. We made some educated estimates about where the insurance market appears to be heading, as uncertain ...

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Coronavirus Is Here: What Does That Mean for Your Project and Your Business?

Updated: March 13, 2020 By: Alexander Gorelik, Joshua E. Holt, Brian N. Krulick, Shoshana E. Rothman, A. Michelle West, and Brian S. Wood The outbreak of COVID-19 (“coronavirus”) has wreaked a considerable human toll of death, physical suffering, fear, and anxiety internationally. Much of the fear and anxiety results from a lack of information or a full understanding about the ...

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Coverage Implications for COVID-19 Project Shutdowns

By Jeremiah M. Welch Boston’s recent decision to temporarily shut down city construction projects has many in the industry asking what impact, if any, a COVID-19 related shutdown would have on project insurance. For this article, the focus is not on the question of whether there is coverage for damages or liabilities because of COVID-19; there are many other articles ...

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COVID-19 Impacts on Federal Contracts: Confirming Acceptability of Performance

By David Robbins In this unprecedented time of global pandemic, government contractors, and industries supporting them have spent substantial effort understanding contract terms like force majeure, excusable delay, changes, and Defense Production Act rated orders. The surety industry is also rapidly learning these terms and clauses and how they apply to Miller Act bonds issued for federal construction contracts. The Miller ...

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Coronavirus (COVID-19)—Guidance for Contractors

ISTOCK/HAZEMMKAMAL By Levi W. Barrett, Steven M. Charney, Warren E. Friedman, and Christopher B. Kinzel The Coronavirus has been the subject of an extraordinary amount of media coverage since the start of 2020. As we approach the end of the first quarter of the year, its impact on local and global economies and our way of life cannot be ignored. ...

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2019 Accounting Tax and Technology Check Up

PanchenkoVladimir/Shutterstock.com What faces our industry is a period of great opportunity balanced with some real concerns. In the recent Associated General Contractors of America labor results, each state varies with construction labor growth, but, overall, most are troubled by the decline in available, qualified labor in the construction industry. Most construction organizations can attest to that. The work programs have ...

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Security Bonds: What Bond Producers and Their Construction Clients Need to Know

Ktasimar/Shutterstock.com By Toby Miclette I heard a story recently about a public owner in the state of Texas using a security bond in an attempt to force a general contractor (GC) into executing a guaranteed maximum price (GMP) contract amendment at a price no greater than the Initial GMP (IGMP), even though there had been scope changes subsequent to establishing ...

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Indemnitors’ Obligations: If the Surety Suffers a Loss, You’re On the Hook

By Martha Perkins Surety bonds guarantee capital, of course; but they also bring with them the expertise of the surety and reputational benefits to the contractors and construction projects that use them. But contractors who benefit from surety bonds should keep in mind they are subject to indemnity agreements that will bite if they fail to fulfill their end of the ...

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A Guide to Obtaining Payment for Changed Work Not Expressly Authorized

By Eugene Polyak Changes in the work are common on construction projects. But not all changes are handled in strict accordance with the contract’s changes clause. For contractors, it is essential to be paid for the extra work caused by changes. This can become a problem if the change has not been expressly authorized by the owner or the owner’s ...

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