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Issues in Construction Bonds

Total Credits: 3 including 3 CE Credit

Average Rating:
Commercial Lines |  Commercial Lines - Specialty Policies
Richard Pitts
3 hrs
Product Setting: Expires 30 day(s) after program date.




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.


Course Materials


Richard Pitts's Profile

Richard Pitts Related Seminars and Products

Vice President and General Counsel

Arlington Roe

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.  


Tue, Mar 12, 2024 - 02:00pm to 04:48pm EDT
Wed, Mar 27, 2024 - 08:00am to 10:48am EDT
Wed, Apr 03, 2024 - 11:00am to 01:48pm EDT
Thu, Apr 18, 2024 - 02:00pm to 04:48pm EDT
Fri, May 10, 2024 - 08:00am to 10:48am EDT
Wed, May 22, 2024 - 11:00am to 01:48pm EDT
Thu, Jun 06, 2024 - 02:00pm to 04:48pm EDT
Tue, Jun 18, 2024 - 08:00am to 10:48am EDT
Fri, Jul 05, 2024 - 11:00am to 01:48pm EDT
Tue, Jul 23, 2024 - 02:00pm to 04:48pm EDT
Mon, Aug 12, 2024 - 08:00am to 10:48am EDT
Thu, Aug 22, 2024 - 11:00am to 01:48pm EDT
Thu, Sep 12, 2024 - 02:00pm to 04:48pm EDT
Wed, Sep 25, 2024 - 08:00am to 10:48am EDT
Wed, Oct 02, 2024 - 11:00am to 01:48pm EDT
Thu, Oct 17, 2024 - 02:00pm to 04:48pm EDT
Tue, Nov 12, 2024 - 08:00am to 10:48am EST
Fri, Nov 22, 2024 - 11:00am to 01:48pm EST
Wed, Dec 04, 2024 - 02:00pm to 04:48pm EST
Tue, Dec 17, 2024 - 08:00am to 10:48am EST

State Specific Details

State Approval Information Details ME - This course is approved for 3 hours of credit # 27124

Promo Video



Overall:      4.7

Total Reviews: 134