Why Does the Wording of A Performance Bond Matter? One of the biggest considerations when you apply for a Performance Bond is the Bond Wording, but many contractors may not know why this is important for their Bond, or what Performance Bond wording should be. This article will discuss Bond Wording, why it’s important, and…
Advance Payment Bond vs Performance Bond In the financial and construction sectors, several types of bonds are used to manage risk, with Advance Payment Bonds and Performance Bonds being among the most common. However, the distinction between these two is not always widely understood, and they are often mistakenly considered interchangeable. This blog will discuss…
What Are Performance Bonds and Parent Company Guarantees? Both Performance Bonds and Parent Company Guarantees are important in construction projects. They provide financial security and assurance in business contracts and agreements and ensure that projects are completed on time and to an acceptable standard. This article will give you all the information you need to…
Why Housing Associations Need Performance Bonds Housing Associations require Performance Bonds for a number of different reasons when engaging Contractors for construction, repair or maintenance works. This article will discuss all the reasons that Housing Associations need and can benefit from Performance Bonds. The Benefits of Performance Bonds Performance Bonds offer a variety of benefits…
What Is The Difference Between Performance & Warranty Bonds? Performance and Warranty Bonds are both Surety Bonds that are used in the construction industry, but both serve different purposes. From a Performance Bond guaranteeing that the contractor will complete a construction project to practical completion, to a Warranty Bond that provides assurance that the contractor…
What is An Advanced Payment Bond? An Advanced Payment Bond is a financial guarantee often used in construction contracts to ensure the contractor fulfils their contractual obligations when receiving advance payments. Issued by a surety company, the bond safeguards the project owner’s financial interests. This blog will discuss everything you need to know about Advanced…
How Performance Bonds Protect Housing Associations There are many benefits of Performance Bonds to Main Contractors, but there are also benefits for Housing Associations. Performance Bonds provide additional financial protection to Housing Associations for the work that appointed Main Contractors undertake on their behalf. This article will discuss how Performance Bonds protect Housing Associations, and…
Construction Bonds Guide: What Is a Construction Bond & How Do They Work? Surety Bonds remain significant in a range of industries but the Construction industry is the most popular. From Performance to Payment Bonds, there are several Construction Bonds that are used to ensure the completion of the construction project whilst protecting all parties…
What Is A Surety Bond? A Surety Bond is a legal obligation involving a three-party agreement between; the principal (contractor), the employer (obligee/project owner), and the surety/guarantor. Surety Bonds protect the employer from financial loss in the event of default regarding contractual obligations, as detailed in the bond wording and contract, that are not fulfilled.…
Do Performance Bonds Have An Expiration Date? Performance Bonds typically expire when the period specified in the bond wording comes to an end, or upon practical completion of the works. They can also be valid until any goods with defects are made. How long a Performance Bond lasts is usually based on the wording of…
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