performance bond


Also found in: Dictionary, Thesaurus, Financial, Acronyms, Wikipedia.
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:
Below are some common myths and realities associated with payment and performance bonds:
He said the blame for not checking the relationship between the contractor and the company issuing the performance bond lies with the town, but legal avenues for recovering the town's funds are being explored.
In accepting the transfer, Universal assumed responsibility for reclaiming the property and was required to post a reclamation performance bond of $1.8 million.
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.
Still, the Ombudsman gave weight to the PRA executives' claim that they were not aware of the existence of the performance bond.
Making use of a performance bond loan worth PS1.1m, the business secured three new contracts worth in excess of PS10m relating to the multibillion dollar Sadara project.
The study results suggest that the minimum contract value that requires a performance bond should be raised to between $1 million and $10 million and that the cost of performance-based prequalification is low compared to the cost of the premiums for performance bonds.
The contractor had also furnished the owner with a surety's performance bond.
The Company has assessed the costs of ongoing LFN rectifications and has decided to notify GRES of its intention to recover these costs from the 7.5 million Performance Bond under the construction contract.
A mining company filed graft, unethical conduct and extortion charges against Environment Secretary Gina Lopez on Wednesday, the same day the Commission on Appointments rejected her nomination, for requiring it to put up a P130-million performance bond in favor of a nongovernment organization (NGO) under her control.

Full browser ?