4.3.4.4 Performance Bonds

• Jurisdiction: Arizona

Generally, a performance bond is the surety’s promise that, if the contractor does not perform the construction work required under the bonded contract, and if the conditions of the bond are satisfied, the surety will complete the contractor’s obligations. Most performance bonds are provided to prime contractors for the benefit of the project owner and construction lender. Some prime contractors require performance bonds from certain subcontractors, normally those subcontractors that are performing a...