Dec 122021
A Performance Bond (or Contract Bond) is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. Performance Bonds act as guarantees to a project owner that the contractor will complete its job according to the terms and conditions of the contract. A Performance Bond provides financial protection to the project owner in the event of default on the part of the contractor.
In general, Performance Bonds are issued as part of a ‘Performance and Payment Bond’, where a Payment Bond guarantees that the contractor will pay their obligated labor and material costs.
Do you need a Performance Bond? We can help, call us at 817-861-1200.