How Legal Expertise Reinforces Your Financial Assurance
Financial risks in construction endeavors can run deep. For builders and real estate developers, thin margins can be wiped out when someone fails to deliver on terms of a contract. Whether required by law or by contract, parties who engage construction contractors often require financial assurances that the work will be performed as stated. Construction compliance matters generally benefit from input from a legal expert in construction law. Among construction compliance issues that can be most impactful construction bond matters.
Compliance matters may include meeting requirements set by federal or state law, or set forth in a contract by agreement. Construction bonds may appear in any of these contexts. A construction attorney can help you negotiate bond requirements so that your assets are protected against inadvertent or unforeseen shortfalls.
Oklahoma Little Miller Act
Under federal law construction companies are required to post surety bonds for government contracts exceeding a fairly low threshold. The requirements under federal law are referred to collectively as the Miller Act. In Oklahoma, the state has codified requirements that closely track the federal requirements. These requirements are referred to commonly as the Little Miller Act. Construction bonds are not only routine but legally required for construction companies working for government in Oklahoma.
Other Construction Bonds
Surety bonds are not only required in connection with government work in Oklahoma. Parties may contractually agree that a contractor will insure with construction bonds. This is particularly common among larger businesses with more sophisticated legal operations or businesses facing higher levels of financial auditing and scrutiny. As with any other provision, the requirements for the surety bonds are negotiable and the cost burden can be apportioned as the parties see fit.
If your company is bidding a private contract that has construction bond or other surety provisions be sure to consult with a construction bond lawyer for guidance on how to proceed.
Call for a Free Construction Bond Consultation
Your first consultation with the Tulsa Construction Bond Lawyer is free. Call today to find out how he can help you in your construction industry matters at (918) 770- 9330.
