Performance Bond - City of Orlando, Florida

Performance Bond is a legal document that was released by the Economic Development Department - City of Orlando, Florida - a government authority operating within Florida. The form may be used strictly within City of Orlando.

FAQ

Q: What is a performance bond?A: A performance bond is a type of contract bond that ensures completion of a construction project according to the terms and specifications of the contract.

Q: Why does the City of Orlando require a performance bond?A: The City of Orlando requires a performance bond to protect the city and its residents in case a contractor fails to complete a construction project.

Q: Who is responsible for obtaining a performance bond?A: It is the contractor's responsibility to obtain a performance bond.

Q: What is the purpose of a performance bond?A: The purpose of a performance bond is to guarantee that the contractor will perform their obligations under the contract.

Q: How much does a performance bond cost?A: The cost of a performance bond varies depending on factors such as the project size, contractor's qualifications, and the bond amount required by the city.

Q: What happens if a contractor fails to complete a project covered by a performance bond?A: If a contractor fails to complete a project covered by a performance bond, the bonding company will step in and hire another contractor to complete the project.

Q: Who pays for the performance bond?A: The contractor typically pays for the performance bond.

Q: How long does a performance bond remain in effect?A: A performance bond remains in effect until the project is completed and accepted by the City of Orlando.

Q: Can a performance bond be canceled?A: A performance bond cannot be canceled unilaterally. It can only be canceled with the agreement of all parties involved.

Q: What should be included in a performance bond?A: A performance bond should include the project details, contractor's obligations, bond amount, and the names of the parties involved.