Constructors Bonding Message Regarding COVID-19Mar 172020
"Thank you for trusting Constructors Bonding, Inc. for your surety needs!
We are all well aware of the massive changes in life arising daily due to the pandemic of Covid-19. While many of us have differing opinions about the dangers presented by the virus we all must consider the impact of the virus on our operations. As your trusted surety partner, there are several things we wish to convey that may support your continued success:
We recommend that, if your contracts do not contain force majeure clauses, that they ALL have these added to any new work before signing contracts. A force majeure clause addresses “unforeseeable circumstances that prevent someone from fulfilling a contract.” Such unforeseeable circumstances may include governmental shut down of large projects with many laborers on site, for example. Otherwise, an Owner may hold you accountable for timely completion even if the City of Los Angeles sends inspectors home for a month and you can not proceed with your work effectively.
Please consider the implications of supply chain interruption. A project securing granite counter tops from China may be drastically delayed at the mine, the factory, the Chinese port, or by US Customs. Reserving rights to be granted automatic extensions of time for supply chain interruptions will be the best way to avoid disputes and/or litigation down the road. Even if your materials are domestic in origin, remember the shut down of imports will place higher demand on domestic products and compromise delivery times. Surely price increases follow.
Many surety companies have suspended travel of their staff. Some have sent their staff to work from home. Some sureties are equipped for this and others… not so much. Keep in mind that it may be slower in getting bonds approved than it has been in the past.
This is affecting every industry and since we service all types of companies, we are here to help with anything that we can in order to assist our clients in their continued success.
Constructors Bonding is proactively addressing issues like these by securing lines of authority to attend to your bond needs internally as an accommodation to this present situation. So, when you pull plans, send in that bid request right away and let us do the diligence needed to be ready; even if you may decide not to bid. We are glad to go to the extra effort to insure your success! Additionally, please take an extra care in updating your file with 12/31/19 data promptly. Everything will go faster with an updated file; especially when your competition has no plan"