Get the free Contractor's Performance Bond

This document serves as a performance bond for a contractor, ensuring the completion of public improvements and financial assurance to the City of Bixby, Oklahoma.

How to fill out contractors performance bond

How to fill out Contractor's Performance Bond

1. Obtain the Contractor's Performance Bond form from a bonding company or surety.
2. Fill out the contractor's business name, address, and license information at the top of the form.
3. Provide details about the project for which the bond is being issued, including the project name, location, and contract amount.
4. Include the name and address of the project owner or the entity that requires the bond.
5. Specify the bond amount, which typically is a percentage of the contract amount.
6. Fill in the effective date of the bond, which should align with the contract start date.
7. Sign the form where indicated and include any required witnesses or notarization.
8. Review the completed bond for accuracy and completeness before submission.

Who needs Contractor's Performance Bond?

1. Contractors who are seeking to bid on government projects or certain private projects.
2. Project owners who require assurance that contractors will fulfill their contractual obligations.
3. Surety companies that issue bonds to contractors to guarantee performance under a contract.

People Also Ask about

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 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 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.

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.

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 are the two types of performance bonds?

There are two main categories: 'on demand' bonds and 'conditional' bonds.

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.

For pdfFiller’s FAQs

What is Contractor's Performance Bond?

A Contractor's Performance Bond is a type of surety bond that guarantees a contractor will fulfill their obligations according to the terms of a construction contract. It protects the project owner from losses in case the contractor fails to complete the project or meets the specified requirements.

Who is required to file Contractor's Performance Bond?

Typically, contractors who are awarded public contracts or large scale private contracts are required to file a Contractor's Performance Bond to protect the interests of the project owner.

How to fill out Contractor's Performance Bond?

To fill out a Contractor's Performance Bond, the contractor needs to complete a bond form that includes details such as the project description, contract amount, and terms of the bond. The contractor and surety company must sign the bond, and it may need to be submitted to the project owner or relevant authority.

What is the purpose of Contractor's Performance Bond?

The primary purpose of a Contractor's Performance Bond is to provide financial security to the project owner by ensuring that the contractor will complete the project in accordance with the contracted terms. If the contractor defaults, the bond can be used to cover the costs of completing the project.

What information must be reported on Contractor's Performance Bond?

The Contractor's Performance Bond must report information such as the names and addresses of the contractor, surety, and project owner, the bond amount, project details, and any relevant contract references. It may also include details about the conditions under which the bond will be activated.