A financial guarantee, provided by a bonding company, that the contractor will perform as set out in the contract. If the contractor does not meet its performance obligations as set out in the contract, then the purchaser can access the bond and have the surety (the third-party bonding company) step in to assist. Generally associated with construction projects, performance bonds can also be useful in other contracting scenarios where performance and project completion are critical success factors.
Procurement Courses
For Individuals
- PSPP: Procurement program for individual
- CMP: Contract Management Program – Essentials for Individuals
For Teams
- PSPP: Procurement program for Team
- CMP Contract Management Program – Essentials for Teams
- Webinars: Webinars for my Team
Disclaimer: The views and opinions expressed in this article are those of the Subject Matter Experts and do not necessarily reflect the official policy or position of The Procurement School.