Dual Obligee Rider Between Surety and Subcontractor - 708

Purpose and Application

The ConsensusDocs 708 – Standard Dual Obligee Rider Between Surety and Subcontractor establishes a binding relationship between the Subcontractor, Surety, and an Additional Obligee under existing Performance and Payment Bonds. This rider is commonly used when a constructor, lender, or other third party requires bonded protection under a subcontract without increasing the Surety’s overall exposure.

The ConsensusDocs 708 helps clarify bond rights and responsibilities in subcontracting arrangements and supports sound risk management.

Key Provisions

Conditional Bond Enforcement

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

Limited Surety Liability

The ConsensusDocs 708 expressly limits the Surety’s aggregate liability to the Constructor and the Additional Obligee to the original Bond Sum stated in both the Performance and Payment Bonds.