{"id":11871,"date":"2019-04-23T10:40:04","date_gmt":"2019-04-23T10:40:04","guid":{"rendered":"https:\/\/examchum.uk\/?p=11871"},"modified":"2023-01-21T09:55:01","modified_gmt":"2023-01-21T09:55:01","slug":"performance-bond","status":"publish","type":"post","link":"https:\/\/examchum.uk\/landscape-architecture\/performance-bond\/","title":{"rendered":"What is a performance bond?"},"content":{"rendered":"<p>[vc_row][vc_column][vc_column_text]A\u00a0<b>performance bond<\/b>, also known as a\u00a0contract bond, is a\u00a0surety bond\u00a0issued by an\u00a0insurance\u00a0company or a\u00a0bank\u00a0to guarantee satisfactory completion of a project by a\u00a0contractor. The term is also used to denote a collateral deposit of\u00a0good faith money, intended to secure a\u00a0futures contract, commonly known as\u00a0margin.<\/p>\n<p>Performance bonds are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as <a href=\"https:\/\/examchum.uk\/landscape-architecture\/main_contractor_bankrupt\/\">insolvency<\/a> of the contractor). In other cases, a performance bond may be requested to be issued in other large contracts besides civil construction projects. Another example of this use is in commodity contracts where the seller is asked to provide a Bond to reassure the buyer that if the commodity being sold is not in fact delivered (for whatever reason) the buyer will at least receive compensation for his lost costs.<\/p>\n<p>Performance bonds are generally issued as part of a &#8216;Performance and <a href=\"https:\/\/examchum.uk\/landscape-architecture\/payment_bond\/\">Payment Bond<\/a>&#8216;, where a payment bond guarantees that the contractor will pay the labour and material costs they are obliged to.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h5>READ MORE<\/h5>\n<ul>\n<li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Performance_bond\" target=\"_blank\" rel=\"noopener\">Performance bond (Wikipedia)<\/a><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A\u00a0performance bond, also known as a\u00a0contract bond, is a\u00a0surety bond\u00a0issued by an\u00a0insurance\u00a0company or a\u00a0bank\u00a0to guarantee satisfactory completion of a project by a\u00a0contractor.<\/p>\n","protected":false},"author":1,"featured_media":11091,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153,20],"tags":[417,410,115,411,412],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a performance bond? 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