performance bond


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Related to performance bond: Bid bond

performance bond

n
(Banking & Finance) a bond given by a bank to a third party guaranteeing that if a specified customer fails to fulfil all the terms of a specified contract, the bank will be responsible for any loss sustained by the third party
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.performance bond - a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance
bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal
References in periodicals archive ?
17, she issued another order requiring CMDC to pay a performance bond of P130 million and use biochar technology to rehabilitate the mined areas.
The provisions of a payment bond are usually included in the performance bond.
The research team suggested that the minimum contract value that requires a performance bond be raised to somewhere between $1 million and $10 million from the current minimums set by each State's bonding regulations.
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.
Reality: It costs the same amount of money to obtain a payment bond as it does to obtain a performance bond.

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