More owners of green projects, especially governments, are demanding long-term performance guarantees, and contractors and designers are trying to figure out how to defray the risks of such commitments. Among the biggest problems posed by guarantees for contractors is being held accountable for work they didn't do and the operation of delivered buildings they no longer control.
Most insurance companies don't cover guarantees, and attorneys often advise against making them out of concern for potential liability that could cost millions of dollars. Contractors don't like to pass on a job because of guarantee demands, especially in the current economy, but some think it could be costlier in the long run not to.