A performance bond ensures the contractor will perform its contractual duties in accordance with the contract. If the contractor fails to complete the project, according to the contract, the owner can make a claim.
A performance bond protects an owner from a contractor’s failure to perform according to the contractual terms signed.
What Are Performance Bonds Used For?
To ensure the project is completed according to the contract terms and conditions. If the contractor fails to comply with these conditions the owner can file a claim to have the project completed by the surety.