Performance Bond

By December 1, 2021No Comments

When a contractor’s tender for a construction project is successful, he will be released from his obligations under his Bid Bond once he has submitted a performance bond as security for completion of the work. If the contractor fails to construct the project according to the specifications laid out by the contract (most often due to the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the amount of the performance bond.