A performance bond is a surety bond issued to guarantee the satisfactory performance of a contract, according to its specifications, by a contractor. This guarantees the performance of the contract in line with the specifications and requirements as specified in the contract agreement or letter of award.
Usually a performance bond is taken for a small percentage of the contract sum as the principal is expected to have done her initial due diligence in selecting one contractor out of a panel of contractors that bid for the contract.
In order to facilitate assessment and issuance of the bond, we require a few pieces of financial and technical information and documentation to accompany the request for cover.
Our sample performance bond can be downloaded here.