Final Answer
ABC Construction recently won a bid to reconstruct the town park. After a few months of work, ABC Construction realizes they won't make any money on the project and walk away, leaving the park half-finished. Luckily, the town had required ABC Construction to hold a surety bond from Parker Sureties, who can now step in to finance the completion of the job. C) Parker Sureties is responsible for completing the park project.
Step-by-step explanation:
ABC Construction's Responsibility:
The scenario mentions that ABC Construction won't make any money on the project and leaves it incomplete. This implies that ABC Construction is unable to fulfill its contractual obligations.
Surety Bond's Role:
The town had wisely required ABC Construction to hold a surety bond from Parker Sureties. A surety bond is a form of financial guarantee that ensures the project's completion, protecting the obligee (in this case, the town) from financial loss.
Parker Sureties' Responsibility:
With ABC Construction unable to complete the project, the surety bond comes into play. Parker Sureties, as the issuer of the surety bond, becomes responsible for financing and ensuring the completion of the unfinished park project.
Costs and Recourse:
The correct option is (C) Parker Sureties is responsible for completing the park project. This means that ABC Construction doesn't bear the costs, and the town has recourse through the surety bond to ensure the project's completion without solely relying on ABC Construction.
Explanation Length:
The explanation provides a detailed breakdown of the situation, clarifying the responsibilities of ABC Construction and Parker Sureties in completing the park project.