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.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.

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.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
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The new law has taken into consideration the "financial burden caused by the performance bond, which relatively increases the project's cost," he added.
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A Contractor has two layers of defence against an arbitrary call by an Employer on a Performance Bond, as follows:
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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.
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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.
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Still, the Ombudsman gave weight to the PRA executives' claim that they were not aware of the existence of the performance bond.
Morales denies clearing Bello to avoid affecting Ombudsman bid
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.
Fund provides catalyst fund provides catalyst for businesses to grow; North East manufacturers can now secure unique financial support which should help them land larger contracts and grow more quickly. PETER McCUSKER reports
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.
Performance-Based Contractor Prequalification as an Alternative to Performance Bonds (TechBrief) Publication Number: FHWA-HRT-14-035
The contractor had also furnished the owner with a surety's performance bond.
Material breaches can lead to project abandonment
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.
Mining firm files graft complaint against Lopez in Ombudsman

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