In a $$20,000,000$ contract the Contractor walks away half way through the project. The Contractor to date has received $$12,000,000.$ The Owner is forced to hire a new contractor to complete work at a total of $$18,000,000.$ Therefore the total cost of construction is $$30,000,000.$

With a $100\%$ face value for the Performance bond, the bonding company will pay the Owner

Question Blank $1$ of $2$

$18,000,000$

dollars for the damages incurred on the project and the owner will be able to recover

Question Blank $2$ of $2$

$0$

dollars from the contractor.