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…
Who Issues Performance Bonds? Performance Bonds are typically issued by a financial institution such as a bank, insurance company, or a surety company as a form of financial guarantee and security that contractors will meet their contractual obligations. This offers a level of risk protection for the lender, ensuring financial protection. This article will…
What Is A Surety Bond? A surety bond is a legal agreement involving three parties; the principal (contractor), the employer (obligee), and the surety/guarantor. These bonds can provide financial protection for the employer in the event that the contractual obligations, as detailed in the bond wording and contract, are not fulfilled. This article will tell…
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 making good of defects. Some performance…
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 required.…
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 to Performance Bonds If you are a principal contractor, you will likely be asked for a Performance Bond at some point during your construction project by a Beneficiary or Housing Association. Performance Bond requirements are becoming increasingly common in the construction industry, with many people needing a…
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