Performance bond
A type of surety bond that ensures a contractor will perform the work according to the terms of the contract.
The performance bond protects the owner against financial loss if the contractor defaults on their obligations.
Used in a sentence
The performance bond ensures that the contractor will execute the project according to the contract terms.
Synonyms/variation
Contract Bond
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Performance Bonds for Construction Explained
Performance bonds provide a guarantee that a contractor will fulfill all of their obligations under a construction agreement. Performance bonds are a subset of contract bonds and guarantee that a contractor will fulfill the terms of the contract. If they fail to do so, the Surety company is responsible for completing the contract obligations, either […]
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