The contract or performance bondis commonly used in many industries including;
§ Real estate
§ Building and many other similar structures’ construction and development.
Contract bonds are usually issued or provided to ensure a very large project is completed to satisfaction. They are feasible financial tools which can be used to ensure road construction or the development of a large real estate is successfully completed.
The performance or contract bonds are usually issued by two different parties that are involved in a project. One party will issue it to contract to the other party as a form of assurance or guarantee against the issuing party inability or failure to accomplish what has been agreed on under the contract. A typical performancebond will guarantee that the project will be delivered on the performance level that has been specified in the contract agreement.
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