Definition
A performance bond is a type of surety. It guarantees the completion of the project according to the terms of the contract; ensuring that your business doesn't lose money if something goes wrong during its creation.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Performance bond on the board and restates it: “Financial guarantee that ensures a contractor will complete a project as specified and meet performance standards.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Performance bond as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Performance guarantee
Assurance that a product or service will meet specified performance standards.
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Performance improvement plan
Structured program designed to help employees improve their job performance.
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Performance indicator
Measurable value that demonstrates how effectively a company is achieving objectives.
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Performance metrics
Quantifiable measures used to track and evaluate business performance.
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