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Section X— Secondary Options

Clause X13

Performance Bond

Purpose

The Contractor provides a performance bond for the amount stated in the Contract Data.

Practical Application

The bond protects the Employer if the Contractor fails to perform. It is provided before the contract starts.

Common Pitfalls

The bond must be from an approved institution. Check the bond wording carefully — on-demand bonds are more onerous.

⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.