PERFORMANCE BOND

Principal (Contractors) - The principal or the general contractor is the party that secures the bond for a price to work on a construction project. This price is generally a fraction of what the bond covers. The performance bond works as an incentive for the contractor to complete the project as they might have to pay back the bond if contract terms are not fulfilled... Performance bonds represent a contract agreement between a construction contractor and a construction project owner. According to this agreement, the contractor is obligated to provide a service for payment while the owner agrees to pay the amount in exchange for the work done... Performance bonds help to protect project owners from financial losses caused by a contractor's failure to complete the project or meet contract specifications.

Also known as: Performance Bonds Company

Primary location: Newport Beach United States