Performance Bond Template

Contract No: ________

Date: ________

Parties:

The undersigned (hereinafter referred to as the "Surety"), a duly licensed and registered surety company authorized to transact business in accordance with the laws of [insert jurisdiction], having its principal place of business at [insert address], and

[Insert Name of Contractor], a company organized and existing under the laws of [insert jurisdiction], with its principal place of business located at [insert address] (hereinafter referred to as the "Contractor").

Whereas, the Contractor has entered into a contract (hereinafter referred to as the "Contract") with [insert name of Obligee], a company organized and existing under the laws of [insert jurisdiction], with its principal place of business located at [insert address] (hereinafter referred to as the "Obligee"), dated [insert date of Contract], for the performance of certain work (hereinafter referred to as the "Work").

In consideration of the above premises and the mutual covenants herein contained, the Surety and the Contractor agree as follows:

1. The Surety agrees to issue and deliver to the Obligee a Performance Bond in the amount of [insert amount of bond] ([insert written amount of bond]) to secure the Contractor's faithful performance of the Contract and the satisfactory completion of the Work.
2. The Performance Bond shall remain in full force and effect from the commencement of the Work until the final acceptance thereof by the Obligee, or the termination of the Contract, whichever occurs first. The Surety shall not be liable under the Performance Bond for any claims or liabilities arising from the Contract after such termination.
3. In the event of a default by the Contractor under the Contract, the Obligee shall notify the Surety in writing, specifying the nature of the default and providing supporting documentation. The Surety shall then have a reasonable period of time to remedy the default or arrange for the completion of the Work.
4. If the Surety fails to remedy the default or arrange for the completion of the Work within the specified time period, the Obligee may declare the Contractor in default and demand the full amount of the Performance Bond.
5. The Surety's liability under the Performance Bond shall be limited to the penal sum stated therein, and the Obligee shall not seek recovery for any amounts in excess of such sum.
6. This Performance Bond is issued subject to the laws of [insert jurisdiction]. Any disputes arising out of or in connection with this Performance Bond shall be resolved through arbitration in accordance with the rules of the [insert name of arbitration association] in [insert jurisdiction]. The decision of the arbitrator shall be final and binding upon the parties.

IN WITNESS WHEREOF, the Surety has caused this Performance Bond Template to be executed on its behalf and the Contractor has executed this Performance Bond Template as of the date first above written.

_____________________________ _____________________________
[Insert Name of Surety] [Insert Name of Contractor]
By: ______________________ By: ______________________
Title: _____________________ Title: _____________________