Booby Trap Bond

Booby Trap Performance Bond "The Surety, for value received, hereby stipulates and agrees that if the Contractor has been declared in default by the Obligee, and there has been no uncontested failure, which has not been remedied or waived, of the Obligee to pay the Contractor as required under the Construction Contract: (i) The Surety shall promptly remedy the default... " Waaaa?! We read this over and over to understand the implications. Is this just another boring bond form, or is there a Booby Trap, an elaborate effort to gain an advantage over the surety? Every bonding company has their own standard Performance and Payment Bond forms. For us, we prefer to use the AIA A-312 unmodified P&P bond. This is a well balanced, widely accepted form. Whenever we receive a special bond form, we must review it carefully. Why did the obligee spend the time and money to devise this? There must be some advantages - for them. 7acmcsQt
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