Do Performance Bonds Have An Expiration Date?

Do Performance Bonds Have An Expiration Date? Performance bonds typically remain valid until the conditions specified in the bond are fulfilled. This is often when the works are completed to the satisfaction of the contract terms or when the defects liability period concludes. However, the exact duration of a performance bond is determined by the…

How is A Performance Bond Calculated?

How is A Performance Bond Calculated? Understanding how performance bonds are calculated is crucial for contractors and project owners alike. This is because performance bonds are significant in ensuring project completion and financial security.  Performance bonds offer protection to the project owner or obligee, typically by providing financial compensation in case the contractor or principal…

Do Performance Bonds Cover Warranty?

Do Performance Bonds Cover Warranty? When a contractor takes out a performance bond, they may assume that it covers their warranty, however, that isn’t the case. A performance bonds primary focus is on performance during the construction phase, it does not inherently cover post-completion warranty obligations unless specified. However, some performance bonds include warranty provisions,…