What is a Performance Guarantee Contract?
Get a Performance Guarantee Contract
A performance guarantee contract is another name for a performance surety bond known as a payment or performance bond. A performance bond is usually given to a contractor along with a payment bond. A performance bond is a contract that guarantees that a contractor will perform according to the terms of the underlying contract. The underlying contract will have certain requirements, such as when the project will be completed and how it will be done as well as quality assurances. Thus, the performance bond will ensure that the contractor can actually perform according to those terms.