Also referred to as a contract bond, a
performance bond is issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract.
Dissatisfied with the suspect's action, the victim demanded a refund of his
performance bond and withdrew from the project, police said.
Researchers examined relevant literature and evaluated the benefits and costs of
performance bonds, which are issued by an insurance company to guarantee satisfactory completion of a project by a contractor.
However, CCEL argued that despite its best efforts, it had been unable to obtain a
performance bond from the funders it had approached in the format required by the contract.
Ledesma defended that he had called up the issuer-bank of the standby letter of credit (SBLC) immediately upon learning that the tendered
performance bond by winning bidder was invalid.
Vice President and Prime Minister of the UAE and Ruler of Dubai, HH Sheikh Mohammed Bin Rashid Al Maktoum has issued a law which amends the
performance bond requirements made of contractors operating in Dubai.
Additionally, if the contractor failed to present the
performance bond and the total contract value ranges between Dh500,000 and Dh2 million, then the contractor may benefit from the
performance bond exemption, yet an amount equivalent to 10 per cent of the contract's payables is held against the final
performance bond until the project's final handover and this amount is subject to release upon submission of an equivalent bank guarantee.
"However, it wouldn't just be
performance bond funding but under the wider badge of project finance, including things like asset finance."
All standard form construction contracts (and many bespoke contracts) require the Contractor to submit a
Performance Bond to the Employer as a form of guarantee in respect of the former's performance of the contract works.
Bid bond is LE150,000 & 150,000 & 15,000 & 150,000 & 200,000 and
performance bond is five per cent of contract price.
EFIC, the Australian government's export credit agency, said the company's customer in Qatar, the head contractor for the new airport project, required that JML arrange a
performance bond for approximately AUD1 million, issued by a bank with a local presence.