Contributed By McGuireWoods LLP
Owners often seek additional forms of security to guarantee both the timely performance of a project and the quality of performance of a project. The type of security will vary largely, based on the financial assets of the contractor and the contractor’s track record for project completion and claims. For larger projects, performance and completion bonds are almost always required. For smaller projects, bonds may be difficult or costly for a contractor to obtain, so contracts will often resist posting them or attempt to pass along the cost of said bonds to the owner. Owners often seek additional security by increasing the amount of retention held. In Virginia, the threshold varies depending upon the type of project.