Form for a Performance Security Bond
A performance security form is another name for a performance bond form. These forms are used when a performance or payment bond is needed. A couple of key considerations is that the performance bond and payment bond are usually granted on the same performance security form, but there are times when they are different. For example, a payment bond can be limited solely to the term of the agreement, plus a few months extra to take care of any potential liens that could be filed against the project by the vendor.
A performance bond is typically a bit longer than that as the owner will normally want some time for a maintenance period. That is, the maintenance period is the time for the owner to inspect the property and make sure that there are not any hidden defects in the property. This time is typically a year or two (although I have seen several that last three years). So, the performance security form has to capture the relevant time frames for the payment bond as well as the performance bond.
What is a Performance Security Form?
This form is used by most Obligees to show what is being covered under the bond.
A good idea is to take a look at the proposed security form. This will help you determine the relevant time periods for the relevant bond.