Performance Bond -How It Protects Project Owners and Helps Contractors Win Bigger Jobs
A performance bond guarantees that a contractor will complete a project according to the contract’s terms, timeline, and specifications. If the contractor defaults, the surety steps in to finish the work or compensate the owner.
Purpose of a performance bond:
To eliminate the risk of incomplete or substandard work on high-value jobs.
Why it’s helpful:
Gives owners confidence to award large contracts
Shows financial stability and professionalism
Expands the size of projects you can qualify for
Where it’s required:
Performance bonds are mandatory for public works, federal contracts, school districts, infrastructure projects, and most large commercial builds.
Bottom line:
If a job is important enough that failure would be expensive or disruptive, the owner will require a performance bond.