Who can use a performance bond template?
Either a developer who wants security from a contractor on a construction project or a bank or other party that gives the performance bond.
What is a performance bond for?
A performance bond is a an undertaking to make a payment. It is given by a bank or insurance company to a developer who may make it a condition that the contractor obtains this security. Usually it is for 10% of the contract price. The developer can call for payment under the performance bond if the contractor becomes insolvent or defaults under the contract.
You need this document if you are a developer wanting to protect your project against non-performance or insolvency by a contractor.
What are the main issues for a performance bond?
The main issue is whether the performance bond is “on demand” or “conditional.” In other words, can the developer call for payment under the bond if something goes wrong or does the developer have to prove the amount of their loss before a call can be made?
Our performance bond template is an ‘on demand’ bond, but with some documents being required before payment is made.
For more information see our Explanatory Notes which you will receive when you download the document from our website.
When I download the document, can I change it and/or use it more than once?
Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs
ContractStore supplies templates and is not a law firm. But all our templates are written by experienced lawyers, in this case by a specialist construction lawyer. So, we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.
And if you want to contact us see our Contacts page.
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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