performance bond

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Related to performance bonds: Contract Bonds, Bid Bonds

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
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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 ?
Performance Bonds: A performance bond guarantees that a project will be completed according to contract specifications and lien-free, if the principal pays the contractor.
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.
Documents including collateral warranties to third parties, sub-contractor warranties, performance bonds and parent company guarantees are all items now required by an employer at the beginning of a contract.
Sheikh Mohammed has amended a law governing performance bonds in Dubai
Finance Wales' new investments fund manager, Mike Owen, said: "One of the issues for businesses in the north-east of England is trying to get performance bonds to undertake projects.
In light of the importance of this topic, this article intends to shed some light on the treatment of Performance Bonds under Qatari law.
However, providing the security for performance bonds can put our cash flow under strain, and in this case, finding a local bank to assist was also a significant challenge,' he explained.
THE USE OF PAYMENT AND PERFORMANCE BONDS ON PRIVATE COMMERCIAL CONSTRUCTION PROJECTS IS WIDESPREAD BUT LARGELY MISUNDERSTOOD BY MOST REAL ESTATE PROFESSIONALS WHO COORDINATE CONSTRUCTION FOR THEIR CLIENTS AND EMPLOYEES.
Shawano County Administrator Frank Pascarella said yesterday that officials had six reports of false performance bonds being issued by The Moser Group.
WorldCom also needs performance bonds for contracts with municipal and private entities to attach and maintain cables and equipment.
Performance bonds will now be accepted electronically, said Wirtz.
In alleged reliance on the financial statements, a surety bonding company issued payment and performance bonds to the client.

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