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Explore the Performance Bond A312 (2010 Edition) detailing contractor, surety, and owner responsibilities. Key legal framework for construction contract compliance.
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What is performance bond?
A performance bond is a type of surety bond that guarantees the completion of a project or fulfillment of a contractual obligation by a contractor or service provider.
Who is required to file performance bond?
Typically, contractors working on government projects or construction contracts that exceed a certain value are required to file a performance bond.
How to fill out performance bond?
Filling out a performance bond involves completing the bond form with details such as the bond amount, the parties involved, and project specifics, and then signing the bond in the presence of a notary or authorized official.
What is the purpose of performance bond?
The purpose of a performance bond is to protect the project owner by ensuring that the contractor completes the project as per the contract terms, providing financial compensation if they fail to do so.
What information must be reported on performance bond?
Key information on a performance bond includes the bond amount, names of the principal (contractor), obligee (project owner), surety company, project details, and the contract number.
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