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.…
When Can I Release A Performance Bond? A Performance Bond is released when all the underlying covenants within the Bond wording and associated contract are satisfied. This is usually when practical completion (PC) of the contract is achieved, or at the end of the making good of defects (MGOD) period. In this article, we will…
How Long Does A Performance Bond Last? When taking out a Performance Bond, many contractors may wonder about their validity period and when they expire. The duration of a Performance Bond varies and is greatly dependent on how long it takes the contractor to achieve practical completion or make good of defects. Some Performance Bonds…
The Different Types of Performance Bonds There are various types of performance bonds that you need to be aware of as a contractor, and not all of them will be suitable for the project you are completing. That is why knowing the types of performance bonds and their differences is important. The two main types…
When Are Performance Bonds Required? Performance Bonds are one of the most common types of Surety Bonds in the market, particularly for construction contracts. Whilst they aren’t always required, many employers choose to ask for performance bonds in their construction projects. Due to this, there are a number of scenarios when performance bonds are…
How Much Are Performance Bonds? If you’re thinking about purchasing performance bonds, there are several cost aspects that you need to know about. This article will help you to understand how the costs are made up, and other factors that may affect the price to contractors. While there is a standard percentage of a contract…
What Are Performance Bonds? | A Quick, No-Nonsense Guide If you are a principal contractor, you will likely be asked for a Performance Bond at some point by a Beneficiary or Housing Association. This article will give you all the information you need to know about securing a Performance Bond, including: What a Performance Bond…
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