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.
The provisions of a payment bond are usually included in the performance bond
. If a payment bond is written separately from a performance bond
, there is no charge for the payment bond.
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.