Construction · Defined
Performance bond
A surety bond addressing specified contractor performance obligations under its terms.
Why it matters
It is distinct from insurance, a payment bond, and a completion guaranty. Coverage, notice, default, and response requirements must be reviewed by the appropriate legal and risk professionals.
In practice
A project example
The lender’s file includes a bond, but its named parties and covered contract must match the intended reliance.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.