This seminar is a wide-ranging examination of insurance related issues connected to bonding in the construction industry. The approach of the seminar is to educate insurance professionals first and foremost about the various legal relationships in the typical commercial construction contract. This includes a discussion of the design - bid - build methodology and also the construction management methodology for commercial construction contracts. A brief review of the design - build method of construction is also included.
The next section of the seminar is a brief review of the American Institute of Architects’ contract forms, as well as those promulgated by the Associated General Contractors.
The seminar then turns to the core topic by looking at bonding basics. The conceptual distinction between a bond and insurance is explained and the major terminology is also reviewed.
From there, the seminar turns first to bid bonds. The major industry form is addressed, as is the statutory background against which most bid bonds operate. Producers are educated on how to move swiftly in the event there is a difficulty at this preliminary stage of the construction project.
The next hour is devoted to the specifics of the performance and payment bond, including a review of the form language, who is eligible to make a claim and how the bond functions in the real world.
A substantial portion of the third hour is devoted to defaults: what happens when a contractor or the project gets into financial difficulty? Much of the emphasis here is on how producers can readily assist troubled contractors and the companies who bonded them, with a view toward avoiding potential errors and omissions liability. Consistent with this, a separate section is devoted to the general agreement of indemnity, due to difficulties it can cause in insured-producer relations.
The seminar concludes with a brief look at hot topics in bonding. This section includes public-private partnerships. It also touches briefly on the distinction between fidelity bonds and construction bonds by using ERISA bonding as an example of the scope of coverage.
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Richard S. Pitts is a private practice attorney in the insurance industry. Rick serves as Vice-President and General Counsel to Arlington/Roe & Co., Inc., an insurance brokerage and managing general agent headquartered in Indianapolis. Rick also serves as general counsel to the Independent Insurance Agents of Indiana, Inc., as well as its sister organization in Kentucky. Rick speaks annually at the “Roadshows” in Kentucky and Indiana’s Agency Compliance Seminars and presents various seminars on insurance and employment related matters. Pitts has also presented continuing education seminars to insurance professionals nationally through industry groups including the National Alliance for Insurance Education and Research.
Rick is a 1983 graduate of Wabash College and a 1986 graduate of Indiana University School of Law – Indianapolis. Pitts clerked for the Honorable Patrick D. Sullivan, a judge of the Indiana Court of Appeals in 1986-87. Rick is admitted to practice before Indiana state and federal courts, the United States Supreme Court and the United States Court of Appeals for the Seventh Circuit and is a member of local, state and national bar associations. Pitts has tried multiple cases and participated in over seventy appeals.
Pitts is the recipient of the “Excellence in Continuing Legal Education Award” from the Indiana Continuing Legal Education Forum (ICLEF), having served as a panelist and lecturer on a variety of continuing education subjects. Pitts has co-authored two articles appearing in the Indiana Law Review.
KY - This course is approved for 3 hrs CE - Course#C24586
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