Performance Bonds

A performance 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 & 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 Bonds
  • DRAFTING THE BOND FORM, PARTICULARLY THE PERFORMANCE BOND FORM

    … Oftentimes, when it comes to payment and performance bonds (in particular) the bond forms are drafted by the obligee. For example, an owner (as the obligee) may draft the bond forms that it wants its general contractor’s surety to execute. And, a general contractor (as the obligee) may draft the bond form that it wants its subcontractors…

    Florida Construction Legal Updates- 11 readers -
  • Information on Subcontractor Default Insurance (“SDI”)

    … Subcontractor default insurance (also known as “SDI”) serves as an alternative to requiring subcontractors to furnish payment and performance bonds. For more on subcontractor default insurance, check out this posting. You can also check out a portion of a presentation given on subcontractor default insurance. Download (PDF, 657KB) Please…

    Florida Construction Legal Updates- 21 readers -
  • ATTORNEY’S FEES AGAINST COMMON LAW PAYMENT BONDS

    …. 627.756 provides: (1) Section 627.428 (entitlement to attorney’s fees) applies to suits brought by owners, subcontractors, laborers, and materialmen against a surety insurer under payment or performance bonds written by the insurer under the laws of this state to indemnify against pecuniary loss by breach of a building or construction contract…

    Florida Construction Legal Updates- 12 readers -
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