By now, you may have heard of the Orlando Round Building demolition contractor walking off the job. Demolition of the old American Federal building downtown was to have been completed by November 2014, in time for the opening of the new Dr. Phillips Performing Arts Center. Many deadlines have been missed over the course of the project.
The City has given the contractor seven days to return to the jobsite with a plan for completion or they face termination of the contract. While it is never a good thing when a contractor is unable to complete a project (or more often, is unable to pay their bills), it is situations like this that underscore the importance of surety bonds for construction projects.
If the contract is terminated and the contractor is found to have been at fault, the bonding company will ensure that another contractor will finish the job at no additional cost to the City and taxpayers. That is what bonding is all about.