Performance bonds

A performance bond covers the damages suffered by the customer in the event of non-performance of the contract by the contractor. Performance bonds may be required across a wide range of commercial situations and in the UK are usually for 10% of the contract price. However, amounts can vary depending upon the location of the contract and the beneficiary’s specific requirements.

Applicant/risk

  • Service sector companies
  • Engineering companies
  • Commercial companies.

Beneficiary

  • Local authorities
  • Government bodies
  • Commercial companies
  • Main contractor.