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[Music] what is performance guarantee in construction contracts have you won the bidding contest are you going to sign the new building contract is your developer demanding a bank guarantee from you [Music] in construction industry providing performance guarantee in favor of the developer before signing the contract is the common practice so why performance bond is important and why developers demand performance bond before signing the contract performance bond is a bank guarantee that assures the developer that the contractor will complete the project successfully within the set time period without any default it also gives assurance that in case of any default in the successful completion of the project the bank will be liable to meet the contractual obligations as agreed in the contract since the bank is assuring the positive completion of the project developer mostly prefer to work with contractors who can provide performance bond before signing the contract if you are looking to g