Hot take · 22:26
// THE QUOTE
“to me that almost creates an imbalanced relationship when the owner is holding that hard security”
Letter-of-credit vs bond: cash gives the owner a hammer they can pull any time, a bond is a default instrument that evens the playing field. Strong opinion, complete.
Full episode at 22:26Construction Bonds Explained: How Surety Pre-Qualification Works in Atlantic Canada (Intact & FCA Surety) ▸
THE LESSON THIS CLIP CARRIES
A bond beats a letter of credit for the owner: letters of credit are immediately cashable with no investigation; bonds trigger a formal dispute process that protects the contractor’s interests too.
“a letter of credit won’t do that … they can just cash that at any point if they think they’re gonna be an issue”
THE CHAPTER IT LIVES IN
Capacity Limits, Greedy Contractors, and Stretch Projects
20:00
Clips like this, every two weeks.
SOURCE: 22:26 of Construction Bonds Explained: How Surety Pre-Qualification Works in Atlantic Canada (Intact & FCA Surety)