July 3, 2022
Technical Assurance, LLC

Performance Bonds

The Performance Bond secures the contractor's promise to perform the contract in accordance with its terms and conditions, at the agreed upon price, and within the time allowed.

Normally written in the amount of 100% of the contract price, the content of the performance bonds varies, depending on whether the project is federal, state, or private.  Standard forms developed by various contractor, architect, and engineering associations have proven acceptable to sureties but any variance to standard industry bonds should be reviewed and approved by your surety professional to understand each party’s rights, duties, and responsibilities.  The surety will first look to certain options under the bond to cure a default by its principal and any limitation built into the form that precludes the surety’s willingness to entertain the obligation.