How to Write a Performance Bond
A performance bond is a type of contractual agreement stipulating that certain goals and/or standards need to be met for a project to be considered finished. Performance bonds regulating private construction of public works are required in the United States. When writing a performance bond, it's best to research contractual law and seek professional legal advice before entering into a legal agreement.
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Things You'll Need
- Copy of local municipal code and regulations (if necessary)
- Computer with word processing software
- Printer
- Attorney
Instructions
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1
Reference any information regarding performance bond procedures in a copy of your local municipality's codes and regulations if the performance bond covers public works. Content and format guidelines are locally regulated for public performance bonds.
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2
Open a blank word processing file on your computer.
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Write an introductory statement for your performance bond. This statement should contain the date, indicate all parties legally involved and include the penal sum amount. Use terms such as "principal" for the contractor and "obligee" for the paying party.
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Determine appropriate performance criteria to be met by the contractor. Be as specific as possible when describing performance criteria. Include these criteria in your performance bond.
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Include a portion of the document indicating where all legally involved parties should sign to enter into a legal agreement. Include a line as well for a notary public to sign.
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Print out a hard copy of your performance bond.
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Present your performance bond to an attorney. Ask him or her to proofread the performance bond before signing it and completing the legal agreement. Make sure your idea of what the bond states matches the actual language of the bond.
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