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Explain why a contractor will typically do almost anything in his power to prevent having the owner notify the bonding company that the contractor has failed to fulfill some of the provisions guaranteed by a bond.

Respuesta :

Rumpelstilkski

Answer:

Default by Contractor

Explanation:

A contractor will typically prevent having the owner notify the bonding company all because the bonding company, upon notification by the obligee, is then required to make remedy to the owner in accord with the provisions of the bond instrument, up to a maximum of the face amount of the bond.

Amakamerem

Answer:

Explanation:

Note that The contractor is said to be in default when he fails to fulfil one or more provisions that was guaranteed in a bond. (He didn't keep his own part of the bargain in the bond)

He will do everything within his power to ensure that the owner doesn't know this because Once the owner knows the bonding company of a default, the bonding company will fulfil the obligations as set forth in the bond instrument. The company will vigorously seek the principal which the bonding paid in fulfilling the provisions of the bond, and the contractor must pay out of his own pocket.

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