Performance Bonds

[danieb1]

From Ballast:

"The cost of the performance bond is paid by the owner and is usually included in the amount of the construction price."

Huh? I understand that the owner has the right to make the contractor obtain a performance bond, per the General Requirements. What I don't understand is why the owner pays for it. It doesn't make sense to me to speak of one party enforcing another to take action for which the first party is already paying for.

Anyone with a better understanding of contracts and bonds care to elaborate?

[icarrillo]

So this test is all about reading comprehension.

"The cost of the performance bond is paid by the owner and is usually included in the amount of the construction price."

The owner pays for the construction of the project.

[hnQ_9999]

....I understand that the owner has the right to make the contractor obtain a performance bond, per the General Requirements. What I don't understand is why the owner pays for it. It doesn't make sense to me to speak of one party enforcing another to take action for which the first party is already paying for....

It's in General Condition, by the way.
The General Condition said if Owner forces GC to buy PPBond,
then first, "bid requirements" has to say so, and later GC can include the price in
the ConstCost for his Bid. Hope you see the sequences.