Although performance bonds are more prevalent in the construction industry, letters of credit offer owners and contractors certain advantages. Dorsey Partner Jocelyn Knoll and Associate Megan Dempsey discuss the different varieties of letters of credit (commercial vs. standby; revocable vs. irrevocable; etc.) and offer an in-depth discussion of how letters of credit function, how they may be used in the construction context and how to navigate the distinct body of law that governs them.