In an effort to manage the risk of a nonperforming prime contractor, the owner often requires the prime contractor to obtain surety bonds to guarantee contract performance.

Question

Quizplus · Accepted Answer

This is true. The surety bond provides a guarantee that the prime contractor will fulfill the contract obligations, and if they do not, the surety company will step in and provide the necessary resources to complete the project. This reduces the risk for the owner and ensures that the project is completed as planned.

In an Effort to Manage the Risk of a Nonperforming