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
A performance bond boosts your credibility, smooths over potential bumps in the road, and gives project owners peace of mind, knowing their interests are protected.
Not every project calls for a performance bond, but many public projects or larger contracts typically do. It’s like having good insurance for your work.
Getting a performance bond is straightforward. You reach out to a surety company, provide the necessary info, and they'll guide you through the process.
If a contractor drops the ball, the bond kicks in. The surety company might step in to get the work done or reimburse the project owner for their loss.
A performance bond is like a safety net. It ensures that a contractor or service provider will fulfill their obligations and complete a project as promised.
If you skip out on getting a performance bond, you might lose out on contracts. Most companies and government entities want that safety net before they can shake hands with you.
Yes, you typically need a new performance bond for each project you undertake. Each job's unique, so it's like starting fresh every time.