A Nevada contractor completes a $300,000 commercial project. The owner claims $50,000 in defective work. If the contractor's bond is called upon, what is the maximum the bonding company will pay for this single claim?
Correct Answer
D) $50,000
The bonding company will pay the actual damages proven (up to the bond limit), which in this case is the $50,000 claimed defective work amount.
Why This Is the Correct Answer
The bonding company will pay the actual damages proven (up to the bond limit), which in this case is the $50,000 claimed defective work amount.
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A Class C contractor's surety bond is in the amount of $15,000. The contractor defaults on three separate projects with damages of $8,000, $12,000, and $6,000 respectively. What is the maximum total amount the surety will pay?