Get those bad days in check.
Why is the Performance Bond useful?
As a Contractor you may be asked to provide a guarantee for the satisfactory completion of a project, performance bonds, also known as a Surety Bond, offer protection in the form of a set payment in the event that a contract is not completed to the specifications required.
What would you like to know?
Performance bonds are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor).
In other cases, a performance bond may be requested to be issued in other large contracts besides civil construction projects.
Another example of this use is in commodity contracts where the seller is asked to provide a Bond to reassure the buyer that if the commodity being sold is not in fact delivered (for whatever reason) the buyer will at least receive compensation for his lost costs.