performance bond (Meaning)
performance bond (n)
a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance
Synonyms & Antonyms of performance bond
No Synonyms and anytonyms found
performance bond Sentence Examples
- The general contractor was required to obtain a performance bond to guarantee the completion of the project.
- The performance bond covered both the contractor's labor and materials used in the construction.
- The surety company that issued the performance bond was responsible for compensating the owner for any losses if the contractor defaulted on the contract.
- The performance bond was a crucial financial safeguard for the owner, protecting them from the risk of incomplete or defective work.
- The amount of the performance bond was typically a percentage of the total contract price.
- The performance bond remained in effect until the project was completed and accepted by the owner.
- The owner could make a claim on the performance bond if the contractor failed to perform according to the contract.
- The surety company would investigate the claim and, if valid, reimburse the owner for their losses.
- The performance bond acted as an incentive for the contractor to complete the project on time and within budget.
- In addition to financial protection, the performance bond also served as a form of quality assurance for the project.
FAQs About the word performance bond
a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance
No synonyms found.
No antonyms found.
The general contractor was required to obtain a performance bond to guarantee the completion of the project.
The performance bond covered both the contractor's labor and materials used in the construction.
The surety company that issued the performance bond was responsible for compensating the owner for any losses if the contractor defaulted on the contract.
The performance bond was a crucial financial safeguard for the owner, protecting them from the risk of incomplete or defective work.
