Bonds

Defining the bond A Bond that is issued instead of capital, that a Sub Contractor would be contractually obliged to allow a Main Contractor hold as a retention in most cases up to a year. A retention bond in many cases goes hand in hand with a Performance bond. The performance bond will cover the…

Development bonds are needed by developers who as part of their planning permission need to put down a cash lump sum or an insurance bond (development bond). This bond is intended to satisfy the local council/planning authority that the developer will complete the works to the standard which is then “Taken in Charge”. These bonds…

A Performance bond (Also known as a contract bond) is commonly used in construction (not exclusively) as a way of satisfying the beneficiary  that the contractor and any of their sub-contractors will fulfill their contractual obligations to the Obligee. This is a tripartite agreement. The parties are, The Principal, the party who has to get…