What Is A Performance Bond

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What Is A Performance Bond

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A performance bond is a surety bond issued by a financial institution such as a bank or an insurance company to signify that the terms of a contract would be fulfilled by the contractor These bonds usually last for twelve months or Performance bonds provide project owners with essential financial protection should a contractor be unable to complete a project due to insolvency or breach of contract A performance bond is a three way contract between the contractor the project owner and a third party bond provider

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