If you hire a contractor, you take a risk. Getting a performance bond can give you a little rest. Even if an entrepreneur has incandescent references, there is no guarantee that everything will go according to plan. What happens if the contractor does not have a timetable? Is it dirty? Are you going to go bankrupt? Who`s going to pay for your lost income? With a performance obligation, a surety company will pay you a certain amount if the work goes wrong. If you are an entrepreneur, a Bond performance shows that you support your work with a financial guarantee. References and promises go so far. A Bond performance shows an owner that you believe in your work. Whether you are the owner of the project or the contractor, a Bond performance can help to reach an agreement. Other names for this document: Performance Bond Form, Payment and Performance Bond, Construction Performance Bond . If you invest in a complex project, a Bond performance ensures that your contractor does the job properly or is paid for.
You never know what awaits them during a construction… Read more.