We have secured an NEC Option A contract where the client wants a bond, using an Un-amended ABI worded Bond. Our bondsman has just come back with the following concern over the method any loss is assessed, they currently are unwilling to provide the bond due to this issue. Has anyone had any similar issues or any comments on how best to deal with this? The bondsman’s comments are:-
“Once again the requirement for the bond wording is the use of the NEC contract. This version (or similar) is always required due to the way in which this contract operates, as loss is established by way of an assessment of the Project Manager. This is not done on the basis of actual costs (as would be the case for other contracts such as JCT), but merely an estimate of the damages which may be incurred. The contract provides no opportunity for challenge or re-assessment”.