One that guarantees the performance of a contract.
A surety bond which acts as a written guarantee that a trade contract will be honoured.
A bond which guarantees faithful performance of a construction contract and payment of all material and labor bills related to that contract. A Performance Bond covers faithful performance only; a Payment Bond guarantees payment of material and labor expenses.
A guarantee of the faithful performance of a construction contract and usually the payment of all labor and material bills related to it. In those situations where two bonds are required - one to cover performance and the other to cover payment of labor and materials - the former is known as a performance bond, and the latter as a payment bond.
The approved forms of security, executed by the Contractor and its Sureties, guaranteeing complete execution of the Work as required by the Contract Documents and the payment of all legal debts pertaining to the construction of the Project which security shall comply with and be subject to ORC 5525.16 and 5525.13, and related provisions.
The approved form of security furnished by the contractor and his/her surety as a guaranty that the contractor will execute the work according to the terms of the contract.
