Performance Bonds – Guaranteeing Project Completion

Performance Bonds are issued by contractors to project owners once a bid is awarded, often following the use of Bid Bonds. These bonds provide a financial guarantee that the contractor will complete the project in accordance with the contract’s terms, specifications, and quality standards.

The bond amount typically reflects the full value of the contract, offering project owners peace of mind that the work will be completed as agreed. If the contractor fails to meet the contractual obligations, the bond ensures that the owner can recover costs to complete the project or correct deficiencies.

At Meixell – Diehl Insurance, we help contractors and project owners understand the importance of Performance Bonds and assist in securing the right bond coverage to protect both financial and project interests throughout the construction process.