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APPENDIX B: PERFORMANCE AND PAYMENT BONDSAPPENDIX B1: PERFORMANCE BOND A Performance Bond will be required if the project is awarded, which will guarantee complete performance of the contract. The
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How to fill out payment bond vs performance

01
Understand the requirements of the project contract to determine if a payment bond or performance bond is needed.
02
Contact a surety bond provider to apply for either a payment bond or performance bond.
03
Submit the necessary documentation and information requested by the surety bond provider.
04
Pay the required premium for the bond.
05
Receive the completed payment bond or performance bond and ensure it is filed with the appropriate parties.

Who needs payment bond vs performance?

01
Contractors who are hired to work on public construction projects typically need to obtain a payment bond as it guarantees payment to subcontractors, suppliers, and laborers.
02
Project owners or investors may require contractors to obtain performance bonds to ensure that the project is completed according to the terms of the contract.

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A payment bond ensures that contractors will pay their subcontractors and suppliers for work performed, while a performance bond guarantees that the contractor will complete the project according to the contract terms.
Contractors are typically required to file both payment and performance bonds, especially on public projects to protect the interests of the project owner and subcontractors.
To fill out payment and performance bonds, contractors must provide relevant project details, including the contract amount, project location, and the names of the surety and contractor, along with signatures from all necessary parties.
The purpose of a payment bond is to protect subcontractors and suppliers from non-payment, while a performance bond ensures the project owner that the contractor will fulfill their contractual obligations.
Information that must be reported includes the contract details, parties involved, the amount of the bond, surety company information, and the scope of the project.
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