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What is a Performance Guarantee Contract?

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Get a Performance Guarantee Contract

A performance guarantee contract is another name for a performance surety known as a payment or performance bond.  This is usually given to a contractor along with a payment bond.  It 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 guarantee contract will ensure that the contractor can actually perform according to those terms.

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