A performance bond is a guarantee from a bonding company that jobs will be completed per the specifications of the contract. 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.

A bond is different than insurance, as the bonding company will not simply write a check if you default on the job. If you’re unable to complete the job, the bonding company may put the job out to bid with selected contractors or even complete the works themselves.

If claims are filed on your performance surety bond, you are responsible to pay back the bonding company.

There is a table based on the class of which a proposer falls in to, and this is determined by the occupation of the proposed.

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