Performance Bond

A performance bond is a type of surety bond issued by a surety company that guarantees the timely and satisfactory completion of a project by a contractor as per the contract between project owner and contractor. Performance bonds are most often required when work is being performed on state or federal projects however they are often used in standard commercial projects as well. The project owner may make it a requirement for the contractor to guarantee work performed, and payment of all sub-contractors with performance bonding. This helps to ensure that in the case of an unexpected event such as default, or the insolvency of a contractor, the promised quality of work will still be maintained. If you have any questions about performance bonds, please contact us toll-free at 1-888-278-7389.