116658 Resource 78777 78860 78860 1140578779950 1140578907495 Controlled Performance Bonds and Commercial Construction Loans A Payment and Performance Bond is a Form of Surety Bond <p><!--StartFragment --><font face="Arial, Helvetica, sans-serif" size="2">A <strong><em>payment and performance bond</em></strong> is a financial tool used to guarantee that in the event of a developer or contractor default, funds are available to finish the construction</font> of the commercial project.</p><p><!--StartFragment -->A performance bond guarantees the faithful performance of the commercial construction contract; i.e, that the commercial project will be completed.&nbsp; The payment bond guarantees the&nbsp;payment of materials and labor by the contractor to all subcontractors and material suppliers.</p><p>The party most likely to require to require a payment and performance bond is the commercial construction lender.&nbsp; The construction lender requires the bond to reduce its <strong><em>construction risk</em></strong> (see prior blog article).&nbsp; The cost of the bond is borne by the&nbsp;borrower/developer.</p><p>Payment and performance bonds are issued by surety companies, a special kind of insurance company.&nbsp; Not all contractors are <strong><em>bondable</em></strong>.&nbsp; A surety company could easily look at the financial statement and CV (resume) of the general contractor and conclude that the general contractor is not qualified to work on the project.</p><p>You can apply to hundreds of commercial construction lenders in just four minutes using C-Loans.com.</p><p /><p /> 9 application/xml false commercial construction loan commercial construction loans commercial financing commercial loan commercial mortgage commercial real estate loans performance bond C-Loans Commercial Mortgage Lender Databank Apply to Hundreds of Commercial Construction Lenders in Just Four Minutes http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 1.1.4322) 71.50.246.209 71.50.246.209 GBlackburne false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web