A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.
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Interesting Questions
Typically, it doesn't take too long. Once your paperwork is in order, you could have your bond in just a few days.
It's a bit tricky. Poor credit might make it harder, but some sureties are willing to work with you. It's worth exploring your options.
If a contractor fails to complete the job, the performance bond kicks in to cover the financial losses. It's like having insurance for your project.
Having a performance bond gives everyone peace of mind. It shows that you're serious about completing the work as promised.
Absolutely! If projects stretch out, or new ones pop up, keeping your performance bond active gives everyone involved a warm fuzzy feeling.
If the contractor drops the ball, the bond provides a safety measure for the client. They can claim the bond amount to cover losses.
It might be a bit of a hurdle, but not impossible. Some companies look beyond just credit scores, especially if you prove your reliability in other ways.