Performance Bond

Here, you can read all of Levelset’s articles about performance bonds. Performance bonds are agreements between subcontractors, GCs, and surety companies that makes sure the sub’s work will be completed.

Performance bonds work by stepping in and helping the sub complete the project or finding another company to complete the project if the original subcontractor finds they are unable to finish the work. In this way, the performance bond protects the hiring party from default on work, and it protects the subcontractor or supplier from nonpayment after the work is complete.

Performance bonds are most often required on public projects. The circumstances in which they’re required vary state-by-state, however. For example, a performance bond may be required on a private project in some situations. Additionally, a GC can make the decision to include a performance bond in the contract even if there is no requirement. In other cases, GCs require subcontractors they’ve never worked with in the past to take out performance bonds. These are called subcontractor performance bonds, and the process for getting one can be a little involved. That’s why your insurance agent will often help you out and find the best deal.

If you need further help with performance bonds, you can browse the questions on the Expert Center. You can also ask a question on the Expert Center for free to get a custom answer that’s tailored to your exact needs. With the Levelset blog and the Expert Center, you can lean how to use performance bonds to get paid in no time.

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