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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To find a reliable contractor with a performance bond, ask for referrals, check reviews, and ensure they have the necessary bond. Always do your homework to avoid any surprises.
Not all projects require a performance bond, but many public works contracts do. It’s often a way to ensure that serious business gets done right.
In Oklahoma City, a performance bond works by providing a guarantee from the bonding company that the contractor will complete the job. If they bail, the bond pays for someone else to finish it.
You need a performance bond to protect yourself from any potential hiccups in a project. It makes sure things stay on track and gives peace of mind.
A performance bond is a type of insurance that guarantees a contractor will fulfill their part of a contract. If they don’t, the bond kicks in to cover any losses.
Not every project needs one, but public projects usually do. If you’re unsure, it’s best to check with local regulations or your project manager.
The time frame can vary. Some bonds can be issued within a day, but it may take longer if the company needs to dig into your financial history.