I spoke for two hours at a training seminar on Wednesday, May 5, 2010 in Renton, Washington on "Construction Bonds: Bid, Performance, Payment, Retainage, Warranty, and Contractor Registration."
The event was sponsored by the Washington State Chapter of the American Public Works Association (APWA) and the Municipal Research and Services Center (MRSC). It is part of an ongoing training series provided by these organizations that is primarily focused on offering free resources for public contracting and procurement professionals in Washington State. About 65 people attended and included some contractors and consultants as well.
Eric B. Larson of the Washington Cities Insurance Authority spoke on insurance issues in the afternoon.
The same seminar will be offered during May 2010 at the following locations:
- May 19, 2010 - Camas, Washington
- May 25, 2010 - Everett, Washington
- May 26, 2010 - Yakima, Washington
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2 comments:
When we have a deductive change order should we get a credit for bonds and insurance?
It really depends on what your contract or General Conditions states about deductive change orders and whether you get a credit for bonds and insurance. There's a strong logical argument that you should get such a credit because the contractor presumably bid the project at a certain dollar amount that includes the cost of bonds and insurance for that size contract. Now that it will be a smaller contract amount, you should get a credit not just the cost of the deleted work, but for the bonds and insurance (and overhead and profit). But if your contract documents don't address this, you may have a difficult time contractually getting the contractor to agree to such a credit. Remember that all change orders are subject to negotiation. You have strong logical grounds for the credit, and stronger grounds if your contract outlines the bonds and insurance credit as well. I hope this helps.
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