Performance Bonds are very common particularly for Construction Contracts. These offer Employers/Developers comfort and protection that the Contractor will fulfil their contractual obligations to complete the work. If the Contractor fails to fulfil the contract as per the terms and conditions the Employer/Developer has financial guarantee by way of a Surety Bond. If the bond is called in due to a breach of contract they will assist the Employers/Developers to overcome any financial costs in finishing the contract or seeking a new Contractor to complete the works.
Performance Bonds are usually issued to Contractors with the Employer/Developer being the beneficiary. As with most Bonds, they are an integral element in helping contractors secure projects as many Employers/Developers will insist on them. They are beneficial to both the Employers/Developers and the Contractor in that they provide peace of mind for the Employers/Developers and they assist the Contractor in getting more business as they can provide the required security.
Ideally if you have a copy of the contract this can accelerate the process and also let us know if you have to adhere to any specific Bond wording otherwise wording can be provided.
Our Surety Specialists are here to help you to the application process.
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