- Secures performance of capital works contracts
- Secures performance of term contracts or services contracts
- Main contractors
- Service providers
A performance bond guarantees to your client that you will carry out and complete a project (or sub-contract) according to the terms and conditions of the contract. It provides security to the owner that in the event of your default, the owner’s losses and damages will be paid under the bond, subject to a stated maximum amount. Generally default is caused by insolvency.