Performance Bond

A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.A job requiring a payment and performance bond will usually require a bid bond, to bid the job. When the job is awarded to the winning bid, a payment and performance bond will then be required as a security to the job completion.For example, a contractor may cause a performance bond to be issued in favor of a client for whom the contractor is constructing a building.
Posts about Performance Bond
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  • HURDLES WITH TRIGGERING A SUBCONTRACTOR PERFORMANCE BOND

    …, to perform and complete the Construction Contract; § 5.2 Undertake to perform and complete the Construction Contract itself, through its agents or independent contractors; § 5.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for performance and completion of the Construction Contract …; or § 5.4…

    Florida Construction Legal Updates- 15 readers -
  • SURETIES DO NOT ISSUE BONDS RISK-FREE TO THE BOND-PRINCIPAL

    … If your construction company is bonded, then you have signed a General Agreement of Indemnity with your surety / bonding company. Stated another way, if a surety issued an obligee on behalf of your construction company, as the bond-principal, a payment or performance bond, then you have signed a General Agreement of Indemnity with your surety…

    Florida Construction Legal Updates- 13 readers -
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