Surety Bond Quarterly - Fall 2015 - (Page 30)

job without any incoming payment. Moreover, it is extraordinarily hard for the constructor to anticipate and to price out this kind of risk. ConsensusDocs takes a balanced approached to this difficult issue. The constructor gets paid for all undisputed work and 50 percent of the estimate of the directed change. The owner retains its claim against disputed work. The constructor's cash flow, which is a constructor's lifeblood, is not endangered. ConsensusDocs now offers its bond form package for free Additionally, ConsensusDocs includes an obligation to convert directed changes into change orders upon agreement, as other change orders are processed. Surety professionals and their contractor clients can download the free ConsensusDocs Prequalification & Bond Form Package, which offers: * E asy editing through the ConsensusDocs Micosoft Wordbased technology, * A collaborative platform helping parties reach consensus faster, * C urrent versions of each ConsensusDocs bond form, and * C onvenient access with 24/7 availability. To access the package, go to the Quick Purchase tab at www.consensusdocs.org. Follow the purchase process, and the balance due will be $0. Financial information Proper risk management includes making sure that the owner has the appropriate finances or financing for the construction project. Learning that project financing is gone when a constructor is in the experience clarity BKD National Construction & Real Estate Group Looking to clear up confusion? Today's changing regulatory environment can overwhelm even the most diligent professional. BKD's advisors share their knowledge in print, in person and online by offering more than 500 articles, videos, webinars and presentations annually, and they participate in industry associations as speakers, sponsors and members. BKD National Construction & ,i> ÃÌ>ÌiÀœÕ«V>˜…i«ޜÕVœ˜vÀœ˜Ì̅iˆÃÃÕiÃ܈̅Vœ˜w`i˜Vi so you can navigate the future with certainty. Tim Wilson // National Industry Partner twilson@bkd.com // 816.221.6300 bkd.com 30 SURETY 760861_BKD.indd 1 BOND QUARTERLY | FALL 2015 midst of performance can spell ruin. ConsensusDocs contracts address this by allowing a constructor to request project financial information throughout the life of the project. The provision has teeth because the constructor may stop work if the owner doesn't respond. Moreover, there are Guidelines for Obtaining Financial Information (ConsensusDocs 290) and a Standard Questionnaire (290.1) that are available. By comparison, the American Institute of Architects (AIA) A201, General Conditions Document, requires that a constructor must ask permission and provide justifications to get access to financial information, once construction has begun. Retainage Holding money in the form of retainage is a protection for owners, but it shouldn't be used as a hammer hovering over a contractor's head. Excessive retainage unnecessarily impedes cash flow and adds costs for carrying an increased capital load that have to be passed on to owners. Consequently, ConsensusDocs has created a standard that improves upon what is typically seen. Once a project is 50 percent complete, no additional retainage is held. Contingent upon the owner's release 07/08/15 12:55 AM http://www.bkd.com http://www.consensusdocs.org

Table of Contents for the Digital Edition of Surety Bond Quarterly - Fall 2015

2015-2016 Executive Committee
NASBP Upcoming Meetings & Events
From the CEO - Resources: Forms, Opinions & Risk Management Practices
Practical Insights: What You Need to Know - Key Takeaways
Alternative Project Delivery, Alternative Risks
Contractors in a New Age of Product Delivery - Sharing Design Liability
DBIA Releases New Bond Forms for Design-Build Projects
AIA’s New Teaming Agreement: AIA Document C102TM–2015
ConsensusDocs Contracts Help Ensure Smooth Sailing
NASBP’s Seven Virtual Seminars on Leadership
Guidance in Addressing Ethical Dilemmas
Web-Exclusive Features
2015 NASBP Resource Directory
Index to Advertisers

Surety Bond Quarterly - Fall 2015

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