bond insurance
performance bond insurance
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overview
performance bond Insurance is bond insurance that provides a guarantee to the principal of a project that they will be financially compensated as a result of the failure of the contractor to complete the project as per terms of the contract.
In the event of a contractor’s tender has been accepted by the principal and a Letter of Award is issued, the contractor would requires a performance bond to complement the related project’s insurance for the same project such as contractor all risks, erection all risks or workmen compensation.
Performance Bond can be issued either in the form of a Bank Guarantee or an Insurance Guarantee.
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