On March 17, 2020 the City of Boston became the first city, but not likely the last city to close down all construction projects currently in progress due to the COVID-19 crisis. This raises the question of what impact that will have on meeting the schedules and terms of the various construction contracts. Will liquidated damages be assessed if a contract does not meet its contractual schedule? The dictionary defines force majeure as an unforeseeable circumstance that prevents someone from …Read More

By Mike Sanders, AFSB Senior Vice President of Underwriting, Old Republic Surety Company Large overbillings or under-billings can be an indication of problems that could jeopardize the stability of a contractor’s bond program. Generally Accepted Accounting Principles (GAAP) state that to be accurate, the best way for a contractor to report earnings is most often on the Percentage of Completion (POC) method of accounting. This method ties together what the contractor actually earned, with what they actually billed, showing differences as …Read More