performance bond
1
7.2
- noun
- /pərˈfɔːrməns bɑnd/
- Specialized
:
fianza de cumplimiento
- For the NN to take over control of the LUP management, regardless of how management policy, appraisal, performance bond, and insurance issues are resolved, the NN will need to involve the BIA in any transfer of records.
- post a performance bond
- performance bond requirement
- require to post performance bonds
Examples
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Finally, restrictive covenants, performance bonds, or other instruments are furnished by the owner to satisfy approval requirements.
Academic text (2001) -
Two enforcement mechanisms were also added: the developer was required to record a restrictive declaration restating legal obligations regarding the space and to post a performance bond to secure ongoing operational and maintenance obligations.
Academic text (2001) -
Another precedent for environmental assurance bonds is the producer-paid performance bonds often required for federal, state, or local government construction work.
Academic text (1992) -
For example, the Miller Act (40 U.S.C. 270), a 1935 federal statute, requires contractors performing construction work for the federal government to secure performance bonds.
Academic text (1992) -
Performance bonds provide a contractual guarantee that the principal (the entity that is doing the work or providing the service) will perform in a designated way.
Academic text (1992) -
The GLA indicates that all lease rates, with a few exceptions, such as those needed for home sites or religious or governmental purposes, need to be based on fair market values as determined by appraisals conducted by licensed appraisers, and that lessees must obtain performance bonds and insurance.
Academic text (2018) -
To ensure the construction project is completed on time, the contractor must submit a performance bond to the client.
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The city council voted to require a performance bond from all contractors working on public projects to guarantee compliance with contract terms.
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Before starting the renovation, the company had to post a performance bond to cover any potential damages or delays.
Synonyms
1
7.7
A promise by another company to pay the client if a contract is not fulfilled
Antonyms
- Formal
12
3.6
Failure to do what a contract requires, for example not delivering goods or not paying
Surface Forms
Morphology
The phrase combines 'performance' (fulfilment of contractual duties) and 'bond' (a financial instrument), so there is a measurable connection: it signals a financial guarantee tied to performance. However, the technical sense of 'bond' here (a surety/guarantee issued by a surety company) is specialized and differs from the common learner meaning of 'bond' as a debt instrument, so a B1 learner who only knows the basic senses would likely not fully infer the exact legal/guarantee meaning without prior exposure.
Etymology
Performance bond paints a simple picture: performance is 'doing the work' and bond is a money promise held by a third party. So if the contractor does not finish the job, the bond pays the client, and that's why the term means a financial promise that protects the client if the contract is not completed.