performance bond


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Related to performance bond: Bid bond

performance bond

[pər′fȯr·məns ‚bänd]
(engineering)
A bond that guarantees performance of a contract.

performance bond

A bond of the contractor in which a surety guarantees to the owner that the work will be performed in accordance with the contract documents; frequently combined with the labor and material payment bond; except where prohibited by statute.
References in periodicals archive ?
The new law has taken into consideration the "financial burden caused by the performance bond, which relatively increases the project's cost," he added.
A Contractor has two layers of defence against an arbitrary call by an Employer on a Performance Bond, as follows:
The town is pursuing all legal avenues to recover its loss, particularly on its performance bond that was not honored.
In accepting the transfer, Universal assumed responsibility for reclaiming the property and was required to post a reclamation performance bond of $1.
For example, it would be advisable for the obligees under the bond to notify the surety in writing of the fact that the contract that will be covered by the performance bond requires the contractor to perform some engineering services in connection with the work.
In How to Update Performance Bond Agreements in 2010, the analyst examines important changes that construction lawyers need to know about drafting and negotiating performance bond agreements, as well as new best practices relating to default, defenses and discharge.
A performance bond is a guarantee that the winning bidder will comply with its contract obligations.
The provision of a performance bond guarantee will offer confidence to operators and contractors in the process of controlling supply chain costs and project timetables.
In the highway industry, one of the primary considerations in prequalifying a contractor is F determining whether a performance bond I can be secured.
The contractor had also furnished the owner with a surety's performance bond.
The Ombudsman said the officials also violated the procurement law and rules by retaining the P500,000 bidder's bond of Comfac and treating it as a performance bond.
Bidder shall simultaneously with the delivery of the executed contract, submit an executed performance bond in the amount of one hundred percent (100%) of the acceptable bid as security for the faithful performance of this contract.

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