The owner requires a bond that responds if the contractor defaults in completing the contract work. Which bond is that?
Correct Answer
A) Performance bond
A performance bond protects the owner against contractor failure to perform the contract. Other choices concern bid commitment, payment to claimants, or post-completion obligations.
Why This Is the Correct Answer
A performance bond protects the owner against contractor failure to perform the contract. Other choices concern bid commitment, payment to claimants, or post-completion obligations.
Why the Other Options Are Wrong
Option B: Bid bond
Choice B gives Bid bond. Its specific error: the option answers a paperwork, payment, or bonding issue.
Option C: Payment bond
Choice C (Payment bond) is rejected because it shifts the question into contract administration money flow.
Option D: Maintenance bond only
In procurement and contracting, Maintenance bond only is the wrong selection for Performance bond: the option delays or omits the controlling step.
Memory Technique
Treat performance bond like a labeled shelf; only the matching condition belongs with Performance bond.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Performance bond purpose" to confirm that A performance bond protects the owner against contractor failure to perform the contract.
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