Performance Bonds Insurance
A performance Bond covers the damages suffered by the customer in the event of a non-performance of contract by the contractor.
Performance Bonds: What you need to know
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. The term is also used to denote a collateral deposit of “good faith money”, intended to secure a future contract.
What should I do?
- Obtain details of the bond amount and period
- Copy of the bond wording
- Copy of your latest published accounts and a copy of your latest management accounts