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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These include support to banks issuing advance payment, progress payment or other contract bonds in relation to UK exports and for working capital support.
When it comes to requiring surety bonds for financing, contract bonds for payment and performance are about 90 percent of what is involved, Inscho says.
The 'A+' rating is based on the credit quality of the state (general obligation (GO) bonds rated 'AA-' with a Stable Outlook by Fitch), as the service contract bonds are secured by annual legislative appropriations from the general fund, pursuant to a service contract.
The 2008 series B and 2008 series C state contract bonds are being issued pursuant to the 15th and 16th supplemental resolutions to the 1992 state contract bond resolution.
and not until he has returned the executed contract and has submitted contract bonds and liability
NEW YORK -- Fitch Ratings has assigned an 'A+' rating to the New Jersey Sports and Exposition Authority's (the authority) approximately $97,260,000 state contract bonds, 2008 series A (federally taxable).
NEW YORK -- Fitch Ratings assigns an 'A+' rating to the New York State Thruway Authority's $239,140,000 local highway and bridge service contract bonds, series 2008, scheduled to be sold this week through negotiation.
The Bid Bonds will be returned promptly upon the approved execution of the Contract and Contract Bonds.
NEW YORK -- Fitch Ratings has assigned an 'A+' rating to the New Jersey Sports and Exposition Authority's (the authority) approximately $186,350,000 state contract bonds, 2007 series B, consisting of:
The UKEF scheme is focused towards UK SMEs to aid them in winning transformational contracts abroad involving contract bonds.
NEW YORK -- Fitch Ratings assigns an 'A+' rating to the New York State Thruway Authority's $197,760,000 local highway and bridge service contract bonds, series 2007, scheduled to be sold the week of May 21 through negotiation with a syndicate led by Morgan Stanley.
The scheme was launched by UK Export Finance (UKEF) to help exporters raise contract bonds such as advance payment guarantees (APGs) and performance bonds.