performance bond

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Performance bond

A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled. Usually part of a construction contract or supply agreement.

Performance Bond

A bond that a company issues to another guaranteeing repayment in case some project fails. For example, suppose a company hires a construction firm to build an apartment building. The construction firm may issue a performance bond to the company. If the apartment building is not constructed according to specifications, the company will not incur any losses because the construction company must repay the bond. This reduces the risk to the bondholder that another party to a contract will not fulfill its obligations.

performance bond

An insurance policy often required on government construction projects.If the contractor does not perform the work it contracted to do, the insurance company will either hire someone else to complete the job or will pay off the resulting damages, up to policy limits. Sometimes it is inaccurately called a performance and completion bond. Technically, liability under a performance bond is contingent on the contracting party paying according to the terms of its construction contract.Contrast with completion bond,where the contracting party does not have to pay anything to the insurance company,even though it might have been obligated to pay the contractor. As a result, most bonds are performance bonds and it is very difficult to obtain a completion bond.

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United also made a claim on the CCSWA construction bond for the unpaid balances owing by VCW.
"Public Construction Bonds," by IADC member Ronald A.
The value of voter-approved school construction bonds for programs designed by BBS in the Greater New York area in the last 24 months exceeds $350 million.
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The Eugene School Board is weighing asking voters to approve a construction bond of up to $300 million as soon as November 2018.
The city agreed before the library opened in 2004 to pay the construction bond. However, with trustees sitting on a more than $1 million endowment fund, Mrs.
Parrish, a Pleasant Hill School Board member since 2008, turned in Tuesday believing that the school district's $17.95 million construction bond request had failed by four votes out of more than 2,000 cast.
All district-wide renovations and expansions were founded through a $21-million library construction bond, approved by local voters in March 2008.
The village has been holding a construction bond for the development; once the discharge issue is resolved it will be released, Ward said.
Late Tuesday night it appeared that the district's $17.95-million construction bond request had failed by just four votes.
Funding comes from the last proceeds of a construction bond measure approved by Eugene voters in 2008, Cox said.
continuation of design phase services will be contingent upon future voter approved school construction bond.

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