performance bond

[485]

a small city in the state where I work is asking for landscape contractors and escavators to have a performance bond in effect for a 24 month period in order to do buisness within the city limits for private home owners. I've never heard of this before and it seems strange to me because usually I thought a performance bond was for a specific job and a comercial job or a very large job. have you ever heard of this?

[Admin]

It sounds to me like the city is confused on what they are requiring. As you said, a performance bond is for a specific contract.

What they want to require is a contractor's license bond. Feel free to refer the, to our forums if they have any questions.


You'd be surprised how often bond requirements are incorrectly setup.