Contract Surety

The Potential Impact COVID-19 Will Have on Contract Surety

04.03.2020

The coronavirus pandemic fosters a plethora of uncertainty for contractors, subcontractors, suppliers, owners, and sureties. In every state across America, guidelines are being put in place to determine if construction is an “essential” infrastructure to governors’ firm stay-at-home orders. The construction industry is confronting legal issues raised by the pandemic, including the construction participants’ obligations and rights under surety bonds and underlying construction contracts. For New York construction information, click here

All construction projects must follow the Centers for Disease Control (CDC) safety protocols regarding COVID-19 health concerns. To prepare and measure the impact of the crisis and mitigate any risk, it is vital to seek professional advice from your surety.  Our surety company, Colonial Surety Company, understands the multitude of pandemic-related challenges that construction projects will encounter. We are more than prepared to deal with issues affecting our principals. We are working collaboratively to reach mutual understandings as to whether work stoppages are temporary or will carry on throughout the duration of a construction project. Any concerns will be cooperatively addressed to avoid unnecessary financial impact.

We can help you stay compliant. If you are a public contractor, it is critical you obtain a performance and payment bond. Colonial Surety Company provides a direct, digital way to secure a surety line of credit. You can apply online today and we will review your submission. Once approved, you gain access to The Partnership Account® for Contractors. The benefits of joining include power of attorney and corporate seal to issue your own bids bonds, direct access to the underwriter, lines in writing with exceptions if needed, complete security, and control over your business. Apply now.