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- GA Performance Bond - City Of East Point 2008
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PERFORMANCE BOND (Must equal one hundred percent of Contract award amount) CITY OF EAST POINT, GEORGIA Knows ALL MEN BY THESE PRESENTS THAT, as CONTRACTOR (hereinafter referred to as the SURETY Principal).
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Executors FAQ
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A bid bond provides a guarantee that a winning bidder will take up the contract as per the terms at which they bid. A bid bond ensures compensation to the bond owner if the bidder fails to begin a project. Bid bonds are often used in construction jobs or other projects that follow a similar bid-based selection process.
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A bid bond is replaced by a performance bond when a bid is accepted and the contractor proceeds to work on the project. A performance bond protects a client from a contractor's failure to perform ing to the contractual terms.
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Contract bonds, sometimes referred to as construction bonds, ensure that the obligations of a construction contract are met, from starting work as promised (bid bonds) to completing the project per specifications and on time (performance bonds) to paying their subcontractors and suppliers for the project (payment bonds ...
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The purpose of a bid bond is to provide assurance to the project owner that the bid was submitted in good faith. Should a contractor be awarded the contract and decide not to undertake the job, the project owner can then use the bond to cover the difference between the awarded and second lowest compliant bidder.
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A performance bond is a financial guarantee to one party in a contract against the failure of the other party to meet its obligations. It is also referred to as a contract bond. A performance bond is usually provided by a bank or an insurance company to make sure a contractor completes designated projects.
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