Most public construction contracts require contractors or subcontractors to secure their bids by providing bonds that serve as a means of legal and financial protection to the client.
Without bid bonds, project owners would have no way of guaranteeing that the bidder they select for a project would be able to complete the job properly. For example, an underfunded bidder (e.g. Cresent) might run into cash flow problems along the way.
Those jobs have already defaulted.
There is no chance IHSI will ever receive any benefit from the $10.5 million in defaulted bids.
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