Page Tags: FAQ

Thursday 14th March 2024
What are performance bonds in construction?

What are performance bonds? Performance bonds are a type of guarantee provided to a client by an insurer, on behalf of the contractor, that the work set out in a contract will be completed to spec and on time. It is increasingly common for a client to request a performance bond, particularly if there is […]

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Thursday 14th March 2024
What are performance bonds for?

What are performance bonds? They are a type of financial guarantee, in which an insurer or bank guarantees to the client or developer that the contractor will complete a project on time and to the required specification. If the contractor fails to do so, the insurance company or bank (the guarantor) will pay the client […]

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Thursday 14th March 2024
Types of performance bonds

What is a performance bond? Performance bonds are a guarantee or security provided by a bank or insurance company to a construction firm to guarantee they complete a contracted project. If the contractor does not deliver as promised, the guarantor (i.e. the bank or insurer) pays a lump sum to the client, which allows them […]

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Thursday 14th March 2024
Are performance bonds renewable?

What is a performance bond? It’s a type of guarantee usually given by an insurance company or bank on behalf of one party to a contract (usually the contractor or builder). The performance bond is a promise to the client that the contractor will complete a project within the required time and to the required […]

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Thursday 14th March 2024
Who pays for a performance bond?

What are performance bonds? A performance bond guarantees that a contracted party will complete a project to spec and on time for the other party in the contract. If the contactor fails to meet the agreed requirements, a guarantor (usually a bank or insurance provider) will pay the other party. In most cases, the guarantor […]

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