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This document is a bond issued by a principal and surety to the Municipality of Anchorage, Alaska, ensuring payment and performance obligations related to construction work within municipal rights

How to fill out construction performance bond

How to fill out Construction Performance Bond

1. Obtain a copy of the Construction Performance Bond form from a surety company or relevant authority.
2. Fill in the principal's name, which is usually the contractor responsible for the project.
3. Provide the name and address of the obligee, usually the owner of the project or property.
4. Include the amount of the bond, typically based on the value of the construction contract.
5. Specify the project for which the bond is being issued, including project name and location.
6. Fill in the completion date or duration of the construction project.
7. Sign the bond as the principal and have it signed by an authorized representative of the surety company.
8. Submit the completed bond to the obligee to ensure compliance with contract requirements.

Who needs Construction Performance Bond?

1. Contractors who are bidding on public or large private construction projects often require it.
2. Construction companies to guarantee project completion and compliance with contract terms.
3. Project owners or developers who seek protection against contractor default.
4. Government entities and agencies requiring financial assurance from contractors.

People Also Ask about

What is an EPC bond?

What are EPC (Engineering, Procurement, and Construction) surety bonds? EPC surety bonds are financial guarantees that ensure the successful completion of renewable energy projects, providing security to investors, buyers, and financing leads.

What is the meaning of performance bond?

A performance bond is a bond that guarantees that the bonded contractor will perform its obligations under the contract in accordance with the contract's terms and conditions. Performance bonds are typically in the amount of 50% of the contract amount, but can also be issued for 100% of the contract amount.

What is a 10% performance bond?

Performance Bonds / Contract Bonds are a type of Surety Bond and are written promises to pay for direct loss or damage suffered by a third party as a result of a breach of contract and are typically issued for 10% of the contract value.

What is another name for a performance bond?

A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith money, intended to secure a futures contract, commonly known as margin.

What is the difference between a performance bond and a letter of credit?

A performance bond remains in effect for the duration of the project, providing the Obligee with peace of mind as change orders are agreed to during the term of the underlying bonded contract. Alternatively, an LC is in place for a set term with the potential for (but not guaranteed) automatic renewal.

What is a performance bond in English?

An undertaking to pay a party (the beneficiary of the performance bond) a fixed amount if and when another party (the applicant of the performance bond) fails to perform (or delays in its performance of) its obligations under an underlying contract.

What are the four types of bonds in construction?

The 4 Main Types of Construction Bonds Explained Bid Bond. Agreement to Bond (a.k.a. Surety's Consent or Consent of Surety) Performance Bond. Labour and Material Payment Bond.

How to calculate performance bond construction?

The total value of the contract is the primary basis for calculating the bond cost, followed by the bond percentage, which is generally 10% of the contract's total value. The duration of the project is another contributing factor, as longer projects may incur a slightly higher bond value due to the longer risk period.

For pdfFiller’s FAQs

What is Construction Performance Bond?

A Construction Performance Bond is a guarantee provided by a surety company that the contractor will fulfill their obligations according to the terms of the contract. If the contractor fails to perform, the surety will cover the financial loss up to the bond amount.

Who is required to file Construction Performance Bond?

Typically, contractors are required to file a Construction Performance Bond before starting a project, especially for public works projects or when there is a significant financial investment involved.

How to fill out Construction Performance Bond?

To fill out a Construction Performance Bond, the contractor must complete the bond form with details such as the principal's name, the obligee's (the project owner) name, the project details, the bond amount, and the surety's information. It usually requires signatures from all parties involved.

What is the purpose of Construction Performance Bond?

The purpose of a Construction Performance Bond is to protect the project owner from financial loss in case the contractor fails to complete the project or fulfill contractual obligations. It ensures that the project will be completed even if the contractor defaults.

What information must be reported on Construction Performance Bond?

The information that must be reported on a Construction Performance Bond includes the names of the parties involved (contractor and owner), project description, bond amount, start and completion dates, and any pertinent contract terms.