A bond issued by a duly incorporated surety company covering the faithful performance of the contract and the payment of all obligations arising under the contract.
A bond that pays to the principal under a contract if the contractor does not complete as per the specifications of the bid. Normally comes into play if the contractor goes into liquidation before completion, but can be called to pay if there is undue delay.
(1) A written form of security from a surety (bonding) company to the owner, on behalf of an acceptable prime or main contractor or subcontractor, guaranteeing payment to the owner in the event the contractor fails to perform all labor, materials, equipment, or services in accordance with the contract the face value of the performance bond. (2) The surety companies generally reserve the right to have the original prime or main or subcontractor remedy any claims before paying on the bond or hiring other contractors. [Go to source
A bond that guarantees the property owner (the "obligee") that the contractor with the winning bid on a job will perform as promised and on time.
A bond to guarantee performance of a specified act, such as the completion of property or off-site improvements.
Bond issued at the request of one party to a contract in favor of the other party to the contract to protect the other party against loss in the event of default on the contract by the requesting party. The bonding agent may undertake to fulfill the contract or may simply undertake to pay a specific amount in monetary damages. A standby letter of credit or demand guarantee is often used as a performance bond with the latter characteristics.
See Contract Performance Bond.
surety bond, certificate of deposit, letter of credit, or a combination thereof, by which a permittee assures performance of all the requirements of IC 13-4.1 and those of the permit and reclamation plan.
Funds that must be deposited with the broker for each futures or written option contract as a guarantee of fulfillment of the contract. Also called margin or security deposit.
A surety bond that provides protection against non-performance. Traditionally, performance bonds have been required by small issuers or commercial paper. Recently performance bonds have become increasingly used by small and medium sized companies as credit enhancers in a variety of traditional and non-traditional financing transactions.
a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance
a financial tool used to guarantee that in the event
a form of security provided by a contractor to a developer and consists of an undertaking by a bank or insurance company to make a payment to the employer in circumstances where the contractor has defaulted under the contract
a guarantee by a Surety to an Owner that the Contractor will successfully complete the project in accordance with the construction contract
a guarantee by the bonding company that the contractor will perform the work covered by the contract in accordance with the terms and conditions of the contract
a guarantee of a contractor's performance of his contractual
a guarantee that you will perform work in accordance with the terms of a contract
a guarantee to the project owner that the job will be completed according to the terms of the contract and that all labor and material suppliers will be paid Bonds are essentially financial guarantees by the contractor
an insurance company's assurance that the contractor can finish the job as stated in the contract
an undertaking by a financial institution such as an insurance company to guarantee that the contractor will complete the contract, up to the face limit or penal sum of the bond
a type of insurance policy that guarantees payment of any money owed in the event the operator experiences financial problems
a written instrument executed by the contractor (the principal) and a second party (the surety or sureties) to assure fulfillment of the contractor's obligations under the contract
An insurer/surety, paid for by the Contractor, to guarantee the completion of a construction project. If the project is not completed in accordance with the construction contract, the surety must complete the job, or pay the expenses of completing the job.
In general terms, a surety bond guaranteeing the performance of a contract, usually associated with construction work, but possible for almost any kind of contract.
a written guarantee that a contractor will promptly and faithfully perform the contract in accordance with its terms and specifications. In the event of a default by the contractor, the bonding company is responsible, up to the limit of the bond, for costs in excess of the original contract price. 8.3.7
A bond which promises that the terms of a contract, or some of them, will be performed by the Principal.
A bond furnished to guarantee that a builder will perform in accordance with the contract terms and that the property at completion will be free of mechanics' liens.
Funds that must be deposited by a customer with a broker, by a broker with a clearing member or by a clearing member, with the clearinghouse to initiate or maintain a market position. The performance bond helps to ensure the financial integrity of brokers, clearing members and the exchange. Also known as Margin.
A contract of guarantee, executed subsequent to award by a successful vendor to protect the buyer from loss due to the vendor's inability to complete the contract as agreed.
A contract of guarantee submitted by a successful offeror to protect the County from loss due to the offeror's inability to perform or complete the contract as agreed.
A deposit, pledge, or contract of guaranty supplied by a successful bidder to protect the state against loss due to the bidders inability to complete the contract as agreed. Acceptable forms of performance bonds are those listed in the definition of payment bond.
insurance) A bond which guarantees proper fulfillment of the terms of a contract.
If a foreign contract is awarded, a performance bond may be required of an exporter. Your financial institution or the Export Development Corporation can often assist in financing these bonds.
One which guarantees faithful performance of the terms of a contract for construction or for furnishing of supplies.
Any amount of money, or other negotiable security, paid by the subdivider, or his/her surety, to the Garrett Clerk-Treasurer that guarantees that the subdivider will perform all actions required by the Plan Commission regarding an approved plat. Such bond provides that, if the subdivider defaults and fails to comply with the provisions of an approved plat, he/she will pay damages up to the limit of the bond, or the surety itself will complete such requirements.
Insurance that guarantees that a contract will be completed.
A bond issued to guarantee performance of certain specified acts, such as the completion of construction of a property.... read full article
A guarantee by the bonding company that it will assume responsibility for completion of the contract should the contractor default.
Cash or securities deposited before a landfill operating permit is issued, which are held to ensure that all requirements for operating ad subsequently closing the landfill are faithful performed. The money is returned to the owner after proper closure of the landfill is completed. If contamination or other problems appear at any time during operation, or upon closure, and are not addressed, the owner must forfeit all or part of the bond which is then used to cover clean-up costs.
(Previously referred to as Margin) Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member, or by a clearing member, with the Clearing House. The performance bond helps to ensure the financial integrity of brokers, clearing members and the Exchange as a whole.
A bond of 5-10% of a contract payable if a project is not completed as specified. Usually part of a construction contract or supply agreement.
A bond which guarantees faithful performance of the terms of a written contractor for furnishing supplies or for construction of all kinds. Performance bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability.
A performance bond protects the general contractor (obligee) from financial risk should the subcontractor (principal) default or fail to perform the job according to the terms and conditions of the contract.
bond that secures performance and fulfillment of the contractor obligation s under the contract. [D03542] GAT
A type of bond which guarantees that a contractor will perform under the contract in accordance with the terms of the bid submitted.
A special type of insurance policy that guarantees payment to all parties owed any money.
A surety bond posted by a contractor guaranteeing full performance of a contract with the proceeds to be used to complete the contract or compensate for the owner's loss in the event of nonperformance.
A written promise from an insurance company, stating that if a given person does not complete work required under a contract, the insurer will pay someone else to complete the work or pay damages.
A tri-partite deed, often issued by a bank or an insurance company (the surety), to provide financial protection to a client in respect of any extra expenses that may be incurred in making alternative arrangements for the work to be carried out in the event of default by a contractor.
A bond to guarantee performance of specified acts such as the completion of construc-tion of a property or off-site improvements.
A pledge from a surety to pay the bond amount to the Obligee (owner or contractor) in the event of a default in performance of contractual obligations.
Bond submitted by the contractor that guarantees his ability to complete the work for the contract price.
A bond supplied by one party to protect another against loss in the event of default of an existing contract.
A financial guarantee posted by a mine operator to ensure faithful performance of the reclamation requirements of the Surface Mining Act. Bonds are returned to the operator upon successful completion of reclamation. If the operator does not complete the required reclamation, the bond is forfeited and the money is used to reclaim the land.
A type of surety bond where the surety company guarantees the contractor will fulfill the contract in accordance with its terms.
A surety bond purchased by a contractor that guarantees that the contractor will complete a project as spelled out in the contract.
A bond obtained by a contractor from a surety company and offered by a contractor to a bank guaranteeing that he or she will perform its work in accordance with the contract documents.
A bond which guarantees performance of the terms of a written contract, Performance Bonds frequently, but not always, incorporate payment bond and maintenance bond liability.
(1) A written form of security from a surety (bonding) company to the owner, on behalf of an acceptable prime or main contractor or subcontractor, guaranteeing payment to the owner in the event the contractor fails to perform all labor, materials, equipment, or services in accordance with the contract. (2) The surety companies generally reserve the right to have the original prime or subcontractor remedy any claims before paying on the bond or hiring other contractors. (see Labor and Material Payment Bond and Surety Bond)
A guarantee that a contract for construction will be carried out.
An indemnity provided to a party to the effect that another party undertaking certain contractual obligations to the indemnified party will perform as promised. Performance bonds are most prevalent in the construction and real-estate development industry.
Issued by banks or insurance companies of behalf of suppliers or contractors providing surety to the recipient that contractual terms will be performed. The recipient can call the guarantee if they are not.
Funds that must be deposited by a customer with his or her broker, by a broker with a clearing member or by a clearing member with the Clearing House. The performance bond helps to ensure the financial integrity of brokers, clearing members and the Exchange as a whole. Also referred to as "margin" (not the preferred term).
A contract of guaranty executed subsequent to award by a successful bidder to protect against loss due to the bidder's inability to complete the contract as agreed.
One issued by an insurance company; posted by a party who is to perform certain work. If the work is not performed, the insurer promises to complete the work or pay damages up to the amount of the bond.
A bond provided by the bank or the insurer of a supplier to assure the buyer that the supplier will perform as agreed, i.e. fulfil his obligations within the terms and conditions agreed upon in the contract. The bond will compensate the buyer should the supplier fail to perform. It is usually issued to cover 10% of the contract value. Français: Garantie de bonne exécution Español: Fianza de cumplimiento, aval de cumplimiento, fianza de ejecución
An amount of money (usually 10% of the total price of a job) that a contractor must put on deposit with a governmental agency as an insurance policy that guarantees the contractors' proper and timely completion of a project or job.
A bond, also known as a completion bond, given by a contractor and issued by an insurance company to guarantee the completion of contracted work. Public authorities often require a performance bond prior to granting a contract for work to be completed. These bonds are usually issued by insurance companies.
A bond, usually posted by one who is to perform work for another, which assures that a project or undertaking will be completed as per agreement or contract.
guarantees the performance of the terms of a contract for construction or the furnishing of supplies. (See SURETYSHIP)
The amount of money or collateral deposited by a client with his broker, or by a clearing firm with CME Clearing on open futures or options contracts before a customer can trade. The performance bond is not a part payment on a purchase.1. Initial performance bond is the total amount of margin per contract required by the broker when an account is opened, or when the equity in the account falls below CME Clearing minimum maintenance requirements.2. Maintenance performance bond is a sum which must be maintained on deposit at all times. If a customer's equity in any futures position falls below the maintenance level because of adverse price movement, the broker must issue a margin call to the minimum CME Clearing initial margin requirement to restore the customer's equity. Consult the Contract Specifications for margin requirements of specific contracts.
A performance bond is a bond issued by an insurance company to guarantee satisfactory completion of a project by a contractor.