Who does the performance bond protect?
A performance bond comes into play when there is a default on the part of the general contractor. The obligation between the general contractor, the owner and the surety is to ensure proper completion of the contract. Subcontractors, suppliers, etc. have no protection under the performance bond. Their only protection is under the payment bond. This video reviews when a performance bond is required and who is require to obtain it and discusses the procedure under a performance bond when there has been a default on a project.
Runtime: 14 minutes
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