Faced with competition and new demands from prime contractors and owners, sureties have started providing guarantees that include commitments to a quicker formal response to a claim under a performance bond involving a subcontractor default.
Those adjustments involving investigation and response to a subcontractor default are being made during a time of surety innovation in the U.S. involving other types of bonds. For example, last year Standard & Poor’s provided a favorable rating for an expedited dispute resolution bond geared to the new demands of P3s and their lenders.