All posts in Tender

Bonding or Insurance?

des office

An addition to an existing school valued at around $1M was out to tender.  This was Robert’s first major project after starting his own firm, and as a newly registered architect he was still feeling his way around the world of tendering and contract administration.  This was also the first time he had written specifications by himself.  

Everything was going pretty well with the tender, until Robert received a call from one of the bidders on the morning before the closing.  The bidder asked if  instead of providing a bid bond and the other bonds listed,  could he just include a copy of his Builder’s Risk insurance policy?

It was a pretty good policy, he was paying a lot of money for it, so what was the use of doubling up on the insurance with bonding?  The contractor explained that the Contract Security (Bid bonds, Performance Bonds and Labour & Material bonds) were just different forms of insurance and that he could save the owner a lot of money by not having to provide them.  “Trust me” he said, Insurance was all that was needed!  Robert started to question himself and the spec he had written.  What should he do? Read More…