Learn the key differences, costs, and strategic benefits of using surety bonds versus letters of credit and gain practical insights into when each option is most appropriate for ensuring performance and payment obligations.
Many construction projects, particularly public works projects, require the contractor to post a surety bond to guarantee the timely completion of the project and/or the timely payment of subcontractors and suppliers to the project. On some projects, particularly private works projects, the owner and/or contractor may find that it more appropriate and beneficial to have the contractor post a letter of credit guaranteed or backed by a bank or other financial institution to provide a financial guaranty for a contractor's performance of the project work and payment of the subcontractors and suppliers on the project. This program will describe the role of letters of credit and surety bonds. The difference between the two and the potential benefits and disadvantages of using either approach. This program will also provide a comparison of the likely cost of the use of surety bonds versus letters of credit. Finally, this program will discuss and identify projects and situations where providing a letter of credit might be more appropriate than posting a surety bond and vice versa.
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Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Bonds - Primer
- General Explanation
- Pros
- Cons
- Nuances
Letters of Credit - Primer
- General Explanation
- Pros
- Cons
- Nuances
Anecdotal Examples and Explanations on Usage
- Panel Discussion, War Stories, and Examples and Explanations of Usages That Have Worked Well or Not
- Owner Perspective, Contractor Perspective, Sub Perspective
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Why Lorman?
Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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OnDemand Course
This course was last revised on November 6, 2025.
Call 1-866-352-9540 for further credit information.
- AK CLE 1.0
- Alaska attorneys may receive 1.0 hours of continuing legal education for completing this program. Please contact the Alaska Bar Association or go to www.alaskabar.org for details regarding reciprocity with other states.
- AL CLE 1.1
- This course or a portion thereof has been approved by the Alabama State Mandatory Continuing Legal Education Commission for a maximum of 1.1 hours credit.
- AR CLE 1.0
- This course has been approved for 1.0 hours of CLE by the Arkansas CLE Board.
- Arizona CLE 1.0
- The Arizona State Bar does not pre-approve or pre-certify MCLE programs. However, records of this program and attendance will be maintained by Lorman Education Services for auditing purposes. This activity may qualify for up to 1.0 hours toward your annual CLE requirement for the State Bar of Arizona.
- CA MCLE 1.0
- Lorman Education Services is a State Bar of California approved MCLE sponsor and this course qualifies for 1.0 CLE hours of participatory credit.
- CT CLE 1.0
- Neither the Connecticut Judicial Branch nor the Commission on Minimum Continuing Legal Education approve or accredit CLE providers or activities. This course has been approved for CLE credit in jurisdictions aside from CT and therefore it automatically meets the content and delivery requirements in Connecticut. Credit is based on a 60 minute credit hour and shall be awarded as follows: 1.0 CLE credit(s).
- GA CLE 1.0
- This program has been approved by the Georgia Commission on Continuing Lawyer Competency for 1.0 CLE hours.
- HI CLE 1.0
- This program was approved by the Hawaii State Board of Continuing Legal Education for 1.0 CLE credit hours.
- IL CLE 1.0
- This course was approved for a total of 1.0 hours of MCLE Credit by the Illinois MCLE Board.
- MO CLE 1.3
- This course qualifies for self-study CLE credit in Missouri.
- ND CLE 1.0
- North Dakota CLE policy does not allow for pre-approval of any self-study courses. This course may qualify for up to 1.0 hours of CLE credit.
- NH MCLE 1.0
- NH MCLE does not approve or accredit CLE activities for the NH Minimum CLE requirement. Lorman Education Services believes this Ondemand course meets the requirement of NH Supreme Court Rule 53 and may qualify for CLE credit(s). Program Length: 64 Minutes.
- NJ CLE 1.3
- This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.3 hours of total CLE credit.
- NM CLE 1.0
- This program has been approved by the New Mexico Minimum Continuing Legal Education Board for 1.0 hours of credit.
- NV CLE 1.0
- This program has been approved by the Nevada Board of Continuing Legal Education for 1.0 CLE hours.
- NY CLE 1.0 including Areas of Professional Practice 1
- This course has been approved in accordance with the requirements of the New York Continuing Legal Education Board for up to a maximum of 1.0 credit hours in the area(s) of Areas of Professional Practice for 1.00 hour. Each hour may be counted only as satisfying one category of credit. Duplicate credit for the same hour of instruction is not permitted. This course qualifies for both established and newly admitted attorneys. Lorman Education- Noggin Guru, Inc. has a financial hardship guideline. Please contact customer service at 1.866.352.9539 for instructions on how to apply.
- PA CLE 1.0
- This Distance Learning program has been approved by the Pennsylvania Continuing Legal Education Board for 1.0 hours of substantive law, practice and procedure CLE credit.
- TN CLE 1.07
- This program has been approved as a distance learning format by the Tennessee Commission on Continuing Legal Education for a maximum of 1.07 hours of credit.
- VT CLE 1.0
- This self-study program has been approved by the Mandatory Continuing Legal Education Board of Vermont for 1.0 hour(s) of CLE credit. Please note: Attorneys may only claim 12 credits per compliance period in this format. This course is considered "Non-Moderated Programming without Interactivity".
- WI CLE 1.0
- This program qualifies for 1.0 hour(s) of ondemand CLE through the WI Board of Bar Examiners.
- WV MCLE 1.3
- This program has been approved by the West Virginia State Bar MCLE Commission for 1.3 MCLE hours.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
MP3 Download
- AK CLE 1.0
- Arizona CLE 1.0
- CA MCLE 1.0
- CT CLE 1.0
- HI CLE 1.0
- MO CLE 1.3
- NM CLE 1.0
- VT CLE 1.0
- WV MCLE 1.3
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Jeffrey Bright
Offit Kurman
- Principal Attorney in the Construction Practice Group at Offit Kurman
- Licensed in PA, MD, D.C., VA, and CA, with over 15 years of experience in construction law.
- Key Expertise: Construction contracts – redlining, negotiating, and advising on various project de-livery methods (design-bid-build, design-build, CM at risk, etc.), Project disputes and claims – including breach of contract, liens, bond claims, de-fects, delays, and scope disputes, and Litigation & dispute resolution – experienced in court, arbitration, mediation, and administrative hearings
- Education: Thomas Jefferson School of Law (J.D., summa cum laude), and Franklin & Marshall College (B.A.)
Mark Johnson
Offit Kurman
- Principal Attorney at Offit Kurman
- Over 30 years of litigation experience in construction, environmental, and real estate law
- Lead counsel in over 30 jury trials, bench trials, and arbitrations
- Has Represented owners, contractors, and design professionals in the construction industry to include disputes over delays, defects, insurance, and licensing, Experienced in state/federal courts and public works arbitration
- Handles environmental cases involving CERCLA, Clean Air/Water Acts, CEQA, Prop 65, and more, Focus on contamination, toxic torts, due diligence, and regulatory defense
- Represents creditors in bankruptcy cases with environmental claims
- Frequent speaker and author on legal issues affecting the construction industry
- Education: Loyola Law School (J.D.), University of Southern California (B.S.) -Petroleum Engineering
Adriana Valenzuela
SullivanCurtisMonroe Insurance Services
- Vice President and Bond Manager at SullivanCurtisMonroe Insurance Services (SCM)
- Brings over 30 years of industry experience to SCM
- Previous role: Managed the Surety Department for Alliant’s Western offices, focusing on team development and bonding solutions
- Holds insurance producer licenses in 18 states, enabling her to support clients with multi-state needs
- Serves clients in multiple industries, including Construction, Legal, and more
- Currently Co-President of Women in Surety – West Coast Division
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Why Lorman?
Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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