November 3, 2016
Subcontractor Default Insurance - The Good, The Bad and The Ugly
Where: River Station - One North Water Street, Poughkeepsie, New York
Time: 6:00 pm
Cost: $55.00 (includes cocktail reception and dinner)
Dinner: Buffet Dinner includes: Caesar Salad; Slided Flat Iron Steak; Chicken Forestaire; Shrimp Penne ala Vodka; Mixed Seasonal Vegetables; Roasted Potatoes; Tiramisu
Presented by: Gregory J. Spaun, Esq., Welby Brady & Greenblatt, LLP; Kevin Viana, Marshall & Sterling, Inc.
A surety bond is a three party agreement whereby the surety guarantees to one party the performance and/or payment of another party. Subcontractor surety bonds have a long history in U.S. construction, and contractors commonly utilize subcontractor surety bonds as a risk management tool for subcontractor payment and peformance protection. In 1996, an alternative product was introduced into the U.S. market - Subcontractor Default Insurance (SDI). SDI is a two-party agreement between the contractor and the insurer that provides the contractor catastrophic insurance coverage for the cost of subcontractor and supplier defualt. While, to date, SDI has not been commonly used in upstate New York construction market, it has been gaining traction throughout the U.S. and as such, subcontractors and suppliers need to become educated on the difference between traditional surety bonds and SDI.
Greg Spaun and Kevin Viana will team up for this presentation,and will provide members with detailed compairson of suretybonds vs.SDI, including the pros and cons of subcontractor default insurance from the perspective of subcontractors and suppliers.