What is a Performance Bond ?

A Performance bond is a guarantee that you will perform work in accordance with the terms of a contract. A BID bond is a guarantee you will perform work if the bid is won by you. A Indemnity bond promises to reimburse loss incurred if you fail to perform or if you fail to pay other vendors in the performance of the contact. A License bond is required by some states for certain businesses. In some cases you pay the state directly rather than obtaining a bond.A Payment bond promises you will pay all subcontractors and material providers utilized in the performance of a contract.