Capacity Building and Education
Payment and Performance Bonds
What is a Payment Bond?
A Payment Bond guarantees payment of the contractor’s obligations under the contract for any subcontractors, laborers, materials and suppliers. If a subcontractor is not paid, a “claim” may be made against the bond for non-payment and the surety company will then rectify the situation.
What is a Performance Bond?
A Performance Bond guarantees the contractor will perform according to the terms of the contract. A Performance Bond protects the owner from financial loss should the contractor fail to complete the project or perform in accordance with the contract.
Final Bond Request Form
(To be used for a bond – performance, payment, maintenance or supply) after contract award)
