Aug 2, 2016

Understanding Your Surety’s Indemnity Agreement

Authored by: Darren Rowles and Scott Cahalan Contractors on public and private projects are often required to obtain surety bonds to secure their bidding, payment, and performance obligations under a construction contract.[1] A bond is a three-party contract entered into by the surety, the principal (contractor) and the obligee (owner) in which the surety guarantees to the obligee that the principal will perform certain obligations under the contract between the obligee and the principal. For example, a surety on a performance bond guarantees the owner that the contractor will complete the project; and a surety on a payment bond guarantees the owner… Read more


Nov 11, 2013

Sovereign Immunity from a Surety’s Subrogation Claims? Not in Georgia

Authored by Darren Rowles and Scott Cahalan When a surety receives notice that its principal has defaulted, the surety is faced with a decision.  Depending on the terms of the bond, the surety can either complete the work at its own expense, obtain bids from completion contractors and then arrange for them to contract directly with the owner or other obligee, allow the obligee to arrange for completion of the work with the costs to be paid by the surety, settle with the obligee, or it can choose to defend against the default and assert the principal’s claims, if any, against… Read more