performance bond

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Word: Performance Bond

Part of Speech: Noun

Simple Definition: A performance bond is like a promise or guarantee that a job will be done correctly. If the job is not done as promised, the bond helps pay for any losses.

Usage Instructions:

• Performance bonds are often used in construction projects or contracts where one party agrees to complete a job for another party.
• They are usually provided by a surety company, which is a company that promises to pay if the job is not completed properly.

Example:

• "The contractor provided a performance bond to ensure that the building would be completed on time and meet all quality standards."

Advanced Usage:

• Performance bonds can be required for large projects to protect the project owner from financial loss.
• In case the contractor fails to fulfill their obligations, the performance bond allows the project owner to receive compensation.

Word Variants:

• Bond (noun): A legal agreement to pay money if certain conditions are not met.
• Surety (noun): A person or company that takes responsibility for another’s performance.
• Obligation (noun): A duty to do something, often defined in a contract.

Different Meanings:

• While "performance bond" primarily refers to a financial guarantee in contracts, the word "performance" can also refer to how well someone does in a job or task, like a performance in a play or sports.

Synonyms:

• Guarantee
• Surety bond
• Contract bond
• Security bond

Related Idioms:

• "Put your money where your mouth is": This means to back up your words with action or a financial commitment, similar to how a performance bond acts as a guarantee.

Phrasal Verbs:

• There aren’t specific phrasal verbs directly related to "performance bond", but you might encounter phrases like "back up" (to support or confirm), which can metaphorically relate to how a performance bond backs up a contract.

Summary:

A performance bond is an important tool in business contracts, especially in construction, to ensure that the job will be completed as agreed.

Academic

Noun

1. a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance

Synonyms

• surety bond