Performance bonds are a financial guarantee for a third party that guarantees project completion or financial indemnity for the party requiring the bond should the contractor fail to complete the work. Performance bonds are usually required by public works departments, counties and municipalities for construction projects. You will see these required for new home builds, work on public utility lines, working in and on public roadways etc.
Performance Bonds are used to protect the investments made by individuals and businesses. It protects you by ensuring the contractor hired to do your job actually completes it. If not, the project owner can go after the bond that was issued for the contractor.
Premiums for Performance Bonds vary depending on the project’s bid amount as well as your previous financial history, or other work history.
To get a quote for your performance bond, contact Lori in our office.