Contract Performance Bond Clause Samples

A Contract Performance Bond clause requires a contractor to provide a financial guarantee, typically in the form of a bond issued by a third-party surety, ensuring the fulfillment of contractual obligations. If the contractor fails to complete the project or meet specified standards, the bond allows the client to claim compensation or have the work completed by another party using the bond funds. This clause primarily protects the client from financial loss due to contractor default, ensuring project completion and risk mitigation.
Contract Performance Bond. The letter of guarantee issued to the name of the GRANTOR by a Financial Entity that is joint and several, unconditional, irrevocable, without benefit of excussion or division, and automatically perform, which guarantees compliance with the obligations under the responsibility of the CONCESSIONAIRE as set forth in this Contract. The Contract Performance Bond may consist of more than one letter of guarantee, on the condition that all of them add up to the total amount required for the corresponding bond. ▪ Construction Performance Bond: The Contract Performance Bond issued for the amount of up to US$ 2,500,000 (Two Million Five Hundred Thousand United States Dollars), as per the form contained in Annex 4, which guarantees those obligations established from the Closing Date to Commercial Start-Up, including the payment of penalties under the Contract and the payment of any amounts ordered by a final and binding judgment or enforceable arbitral award resulting from the execution of the Contract. ▪ Operating Performance Bond: The Contract Performance Bond issued for an amount of up to US$ 2,000,000 (Two Million United States Dollars), as per the form contained in Annex 4, which guarantees those obligations established from Commercial Start-Up to the termination of the Contract, including the payment of penalties under the Contract and the payment of any amounts ordered by a final and binding judgment or enforceable arbitral award resulting from the execution of the Contract.
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Contract Performance Bond. (1) The Supplier binds itself to establish the good performance bond, in quantum of 12.605,04 lei, representing 10 % of the total value of the Agreement, without VAT. Garanţia de bună execuţie este valabilă până la data de 15.09.2019. (2) Furnizorul are obligaţia de a constitui garanţia de bună execuţie a Contractului prin scrisoare de garanţie bancară, la dispozitia Achizitorului, în termen de maxim 14 zile de la semnarea contractului de către ambele părţi. (3) Achizitorul se obligă să elibereze garanţia pentru participare şi să emită ordinul de începere a contractului imediat după ce furnizorul a făcut dovada constituirii garanţiei de bună execuţie. (4) Garanţia de bună execuţie se pierde proporţional cu obligaţiile contractuale neexecutate. (i) Achizitorul are dreptul de a emite pretenţii asupra garanţiei de bună execuţie, în limita prejudiciului creat, dacă Furnizorul nu îşi îndeplineşte obligaţiile asumate prin prezentul contract. (ii) Anterior emiterii unei pretenţii asupra garanţiei de bună execuţie, Achizitorul are obligaţia de a notifica acest lucru Furnizorului, precizând, totodată, obligaţiile care nu au fost respectate. (5) Garanţia de bună execuţie se restituie în termen de 14 zile de la încetarea/rezilierea contractului. (6) Garanţia Produselor este distinctă de garanţia de bună execuţie a Contractului.
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Contract Performance Bond. This Bond shall be for the use of all persons doing work or furnishing skill, tools, machinery, or materials under or for the purpose of this Contract, in accordance with the provisions of the Official Code of the State of Georgia, as amended, and is intended to be and shall be construed to be a Bond in compliance with the requirements thereof. The life of this Bond extends through the Life of the Contract, including the sixty-day maintenance period, and until one year after the Final Acceptance of the Work by the Owner. (Company Name) (Company Name) Executed in Duplicate and as Surety, are held and firmly bound unto ▇▇▇▇▇▇▇▇▇ COUNTY, in the full sum of (100% of the Total Contract Price) dollars and _cents
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Contract Performance Bond. This Bond shall be for the use of all persons doing work or furnishing skill, tools, machinery, or materials under or for the purpose of this Contract, in accordance with the provisions of the Official Code of the State of Georgia, as amended, and is intended to be and shall be construed to be a Bond in compliance with the requirements thereof. The life of this Bond extends through the Life of the Contract, including the sixty-day maintenance period, and until one year after the Final Acceptance of the Work by the Owner. IN TESTIMONY THEREOF, the Principal and Surety have caused these presents to be duly signed and sealed in quadruplicate, this day of , 2020 (Company Name) Attest: By: (SEAL) (Company Name) Attest: By: (SEAL) Title: Title: Executed in Quadruplicate as Principal, and as Surety, are held and firmly bound unto ▇▇▇▇▇▇▇ County, in the full sum of (110% of the Total Contract Price) dollars and cents ($ ), for the use and protection of said ▇▇▇▇▇▇▇ County, Georgia and all subcontractors and all persons supplying labor, materials, and machinery, and equipment for the performance of the Work provided for in the Contract hereinafter referred to, for the payment of which well and truly to be made we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally by these presents.
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Contract Performance Bond. 35 (A) The Contractor shall provide at the execution of the Contract and maintain for 36 the Term of the Contract a Contract Performance bond from a bonding company, financial 37 institution or other entity approved by the County. Said bond shall be , (i) a contract 38 performance bond substantially in the form of Exhibit B, or (ii) a standby letter of credit 39 from a financial institution whose long-term debt is rated in one of the three highest 40 categories by a nationally recognized rating agency (e.g. Standard & Poor' s rating of AAA, 41 AA or A), or (iii) any other financial guarantee or type of bond or letter of credit that is 42 approved by the County. The initial amount of the bond or other financial guarantee 43 provided under this subsection shall be $500,000; however, within thirty (30) days of the 44 date the Contractor receives a notice to proceed with operations or service under the 45 Contract, the bond or other financial guarantee shall be replaced or increased to a minimum 46 amount of $15 million for the first year of operations or service under the Contract. 47 Thereafter, the Contractor shall replace or maintain the bond in an amount equal to seventy 48 percent (70%) of the total revenues paid by the County to the Contractor under this 49 Contract for the previous year of operations. Except for the initial $500,000 bond, the bond 1 shall be issued for a period of not less than one (1) year; the Contractor shall provide a new 2 bond, or evidence satisfactory to the County of the bond's renewability, at least one hundred 3 eighty (180) days before the bond then in effect expires. 5 (B) Any bond under this Section shall automatically terminate on the expiration of 6 the Contract. Notwithstanding the termination of the bonds provided under Section, at any 7 time within two (2) years after the date any bond terminates, the County may make a claim 8 against the bond provided for the Contractor's failure to perform its obligations under the 10 or other financial guarantee referred to in this Article and provided to guarantee or provide 11 the funds to guarantee the performance of the Contractor's obligations under this Contract. 12 All bonds given under this Article that are signed by the Surety's agent must be 13 accompanied by a certified copy of that agent's authority to act for the Surety at the time the 14 bond is signed. The County must approve in writing the Surety providing, and the form 15 and substance of, all bonds. The Contractor...
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Related to Contract Performance Bond

  • Performance Bond Unless otherwise prohibited by law, the Department may require the Contractor to furnish, without additional cost to the Department, a performance bond or irrevocable letter of credit or other form of security for the satisfactory performance of work hereunder. The Department shall determine the type and amount of security.

  • Contract Performance C19.1 The Contractor shall ensure that: C19.1.1 the Goods conform in all respects with the Specification and, where applicable, with any sample or performance demonstration approved by the Authority; C19.1.2 the Goods operate in accordance with the relevant technical specifications and correspond with the requirements of the Specification and any particulars specified in the Contract; C19.1.3 the Goods conform in all respects with all applicable Laws; and C19.1.4 the Goods are free from defects in design, materials and workmanship and are fit and sufficient for all the purposes for which such Goods are ordinarily used and for any particular purpose made known to the Contractor by the Authority.

  • Continuing Contract Performance Pending final resolution of a Claim, except as otherwise agreed in writing or as provided in Section 9.7 and Article 13, the Design-Builder shall proceed diligently with performance of the Contract and the Owner shall continue to make payments in accordance with the Design-Build Documents.

  • Monitoring of Contract Performance The Contractor shall comply with the monitoring arrangements set out in the Monitoring Requirements Schedule including, but not limited to, providing such data and information as the Contractor may be required to produce under the Contract.

  • Performance Bonds Buyer shall have obtained, or caused to be obtained, in the name of Buyer, replacements for Seller’s and/or Seller’s Affiliates’ bonds, letters of credit and guarantees, and such other bonds, letters of credit and guarantees to the extent required by Section 7.05.