Search results
Results from the WOW.Com Content Network
A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to provide a guarantee that the winning bidder will undertake the contract under the terms on which they bid. [1] The bond penalty is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the ...
A penal bond is a written instrument executed between an obligor and an obligee designed to secure the ... regardless of the penalty specified in the bond, ...
Cases referring to penalty clauses use the words "void" and "unenforceable" interchangeably. In the High Court of Australia in the decision of AMEV-UDC Finance Ltd v Austin, [29] Mason and Wilson JJ stated: "At least since the advent of the Judicature system a penalty provision has been regarded as unenforceable or, perhaps void, ab initio ...
A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. [1] They are required in contracts over $35,000 with the Federal Government and must be 100% of the contract value. [2] They are often required in conjunction with performance bonds.
A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith money , intended to secure a futures contract , commonly known as margin .
A surety bond is defined as a contract among at least three parties: [1]. the obligee: the party who is the recipient of an obligation; the principal: the primary party who will perform the contractual obligation
Bid delegation can be a factor fostering the presence of bid rigging; for instance, it is the case of marketing agencies that bid for the same ad space on behalf of different and competing agents. [ 9 ] ).
Bond - usually refers to a performance bond, which is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. Other types of guarantees, such as a bid bond or a materials bond, are sometimes also required by a project owner .