Performance Bond - Orange County, Florida

Performance Bond is a legal document that was released by the Division of Building Safety - Orange County, Florida - a government authority operating within Florida. The form may be used strictly within Orange County.

FAQ

Q: What is a performance bond?A: A performance bond is a type of insurance that ensures that a contractor will fulfill their contractual obligations.

Q: Why would Orange County, Florida require a performance bond?A: Orange County may require a performance bond for construction projects to protect against financial loss if the contractor fails to complete the project or fulfill their obligations.

Q: How does a performance bond work?A: If the contractor fails to meet their obligations, the party requesting the bond can make a claim to receive compensation from the bonding company, up to the bond's value.

Q: Who pays for the performance bond?A: The contractor typically pays for the performance bond, and the cost is often included in the overall project cost.

Q: What happens if the contractor fulfills their obligations?A: If the contractor completes the project as required, the performance bond will not be utilized, and the bonding company will not have to pay any claims.

Q: Is a performance bond the same as a payment bond?A: No, a performance bond and a payment bond are two separate types of bonds. While a performance bond ensures that the contractor completes the project, a payment bond protects subcontractors and suppliers by ensuring they are paid for their work.