Performance Bond ضمان حسن التنفيذ
Definition
A bank guarantee the contractor provides after award — 5% of the contract value on government work — valid until preliminary handover and called on default.
Example
A performance bond of SAR 420,000 was provided before the contract was signed.
Where it is used
Securing the contractor’s commitment to execute the contracted works.
Related terms
From the term to the work
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