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A performance bond ensures that a contractor or service provider completes a project according to the contract terms. It acts as a guarantee for the project owner that the work will be finished on time, within budget, and to the specified quality standards. If the contractor fails to meet these obligations, the bond provides financial compensation to the project owner to cover the cost of completing or correcting the work. Performance bonds(Suretegrity®) are commonly used in construction and large-scale projects to mitigate risk and ensure project completion. They provide reassurance and protect against potential financial losses due to non-performance.

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timscottseo

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11mo ago

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No, the cost of a requested performance bond should be itemized in the proposal.


Can performance bond be transferrable?

Performance bonds are typically not transferrable. When a contractor is replaced or a project changes hands, a new performance bond is usually required by the new party. The new party will need to apply for their own performance bond to replace the existing one.


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