Whether you’re having an entire building constructed or you want a contractor to renovate certain areas of your home or business, you may want to have a performance bond issued. When it comes to construction and renovation, a lot of thought is put into the design and cost of the project. Little is put into the thought of what might happen if the construction company does bankrupt during the project. Having a performance bond can protect you. Here’s what you need to know.
What is a Performance Guarantee Bond?
A performance bond is basically like an insurance policy that is used to protect you should the company you hired be unable to finish the project they were assigned to. While typically used in the government or municipality sector, it can sometimes be issued in the private sector, too. Should the company be unable to finish the project, then you are given a certain amount of money that you can then use to hire another company to finish the project.
Do You Need a Lawyer?
Performance bonds are typically issued based on a departure from the contract. If the contract isn’t detailed or specific enough to cover you, then you might be awarded the performance guarantee bond’s amount. It might be beneficial to have an attorney look over the contract. They can ensure it’s detailed enough and can afford you protection with the bond.
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