Ferrer v. Alliance Co. of P.R., Inc.

The accelerated pace in the construction of public and private works during the last decades has required the constant attention of this Court in the interpretation of the terms of the performance bonds issued for such contracts. In Cristy & Sánchez v. Commonwealth, 84 P.R.R. 226 (1961), *3departing from our former interpretations1 based on the nonexistent contractual relation between the sureties and the persons furnishing the building materials and labor, we held that the bonds required by the State in a public-works contract are for the purpose of protecting the Commonwealth against any…