performance bond
- A type of surety bond that serves as a guarantee to a property owner (like a developer or a government authority), ensuring the completion of a construction project or the payment of compensation up to the bond's limit in case the contractor fails to fulfill the contract terms. This is sometimes also known as a completion bond
- Before commencing the construction project, the contractor provided a performance bond to the city.
- The developer required a performance bond from the construction company to ensure the project's completion.
- If the contractor fails to complete the work as agreed, the performance bond may be claimed by the developer.
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