Dual Obligee Rider Between Surety and Constructor - 264

Purpose and Application

The ConsensusDocs 264 – Standard Dual Obligee Rider Between Surety and Constructor establishes a third party as an Additional Obligee under existing Performance and Payment Bond(s) issued by a Surety on behalf of a Constructor. This rider is commonly used when an Owner is required to extend bond protections to a lender or other interested party.

The ConsensusDocs 264 clarifies the rights, obligations, and limitations of all parties, ensuring transparency and alignment with standard construction risk‑management practices.

Key Provisions

Conditional Bond Enforcement

Neither the Owner nor the Additional Obligee may invoke the bond unless one or both have fully performed the Owner’s obligations under the underlying construction contract.

Limited Surety Liability

The ConsensusDocs 264 expressly limits the Surety’s aggregate liability to the Owner and the Additional Obligee to the original Bond Sum stated in both the Performance and Payment Bonds.

By clearly defining how dual obligees may rely on bonded protection, the ConsensusDocs 264 helps reduce disputes, manage surety exposure, and support financing arrangements in construction projects.