A Performance Guarantee is a document issued by a Credit/Guarantee Provider like us or Insurers or a bank to a contractor to guarantee that the contract is fulfilled in accordance with the plans and specifications.
In order to qualify to bid on a project that requires a payment and performance bond, a bid bond is usually required.
The client is guaranteed compensation for any monetary losses up to the amount of the performance bond if the contractor fails to construct the building according to the contract's specifications.