Definition of performance bond in English:

performance bond

noun

  • A bond issued by a bank or other financial institution, guaranteeing the fulfilment of a particular contract.

    • ‘When Wilbur issued the specifications on December 17, 1930, almost all construction companies were eliminated by the very first stipulated condition: a performance bond of $5,000,000.’
    • ‘But he said that at one stage, out of 20 ‘works packages’ where a performance bond was needed, only one had such a guarantee in place.’
    • ‘Let a biotech company put up a performance bond for its products.’
    • ‘Operators also had to put up a performance bond, to be returned upon completion of reclamation work at the mine.’
    • ‘You're asked to pay an advance fee, transfer tax, performance bond or the like.’
    • ‘The policy would not only provide insurance against tort liability, but would function as a performance bond as well.’
    • ‘Often there is no charge for the bid bond, and the payment bond may be issued at no additional charge when issued in connection with a performance bond.’
    • ‘The men presented gold name cards to developers who, after indicating their interest in building facilities or infrastructure of the heliport, were required to pay a performance bond.’
    • ‘I start with the commercial purpose of a performance bond.’
    • ‘‘I have two jobs going, each of which hit the $3 million mark for performance bonds,’ leaving him still $1 million short.’
    • ‘The local contractors had to put up with very high interest rates at about 40 per cent and expensive costs in the form of performance bonds at 10 per cent, advance payments bonds at 15 per cent and bidding guarantee bonds at two per cent.’
    • ‘However, the firm made the mistake of submitting a performance bond, instead of a tender bond, as was required by the evaluator.’
    • ‘Examples of this were inserting into the requirements for the performance bond and guarantee the requirement that they be executed at the time of entry into the contract.’
    • ‘Each potential owner had to put up only $100,000 in a performance bond and contribute $25,000 of earnest money.’
    • ‘By way of illustration, take the case in which the customer is under an obligation to reimburse to the bank any amount that may be demanded by the beneficiary of a performance bond.’
    • ‘Finally, restrictive covenants, performance bonds or other instruments are furnished by the owner to satisfy approval requirements.’
    • ‘The performance bond is a good thing because it makes growers comply with all the stewardship requirements and quality specifications that need to be addressed.’
    • ‘A performance bond, however, will protect your investment if the road that was built last fall falls apart in the following spring, after you have issued your final payment to the contractor.’
    • ‘This was not like a construction performance bond.’
    • ‘The OWNERS shall be entitled to claim the performance bond.’