What is Performance Bond insurance?
Performance Bond is furnish to the Owner or Principal or Employer of a contract to guarantee for the due performance and observance of the terms and conditions of the contractor’s obligations when a contractor undertakes a construction project.
Here is an overview of your coverage
This is for the Principal to ensure the contractor fulfills his contract:
- Within the period specified
- In accordance with the specifications in the contract
The amount guaranteed varies from 5% to 10% of the Contract Sum
How much is my premium?
- Your premium may vary, depending on:
- Latest Registry of Companies report
- Profit and Loss Statement for last 3 years
- Balance Sheet for last 3 years
- Track Record
- List of past projects completed
- Current projects
- Specimen Bond Wording
- Collaterals, if any