Performance bond
A performance bond guarantees that a contractor can fulfill its contractual obligations to the developer. A performance bond compensates the developer for the additional costs incurred for the completion of the building/project in the event that the contractor is unable to fulfill its undertaking.
In connection with construction and civil engineering projects in Denmark, general regulations in accordance with AB92 and ABT93 are normally applied. In addition to providing security for the completion of the work, the guarantee also covers the correction of faults and defects for up to five years following delivery of the project.
