Given the significant risks inherent in large-scale construction
projects, performance bonds are commonly used to guarantee
performance and reinforce trust between contracting parties. In
Bahrain and across the wider region, employers commonly rely on
performance bonds, typically comprising 5-10% of the total contract
value, as one of the means to safeguard against financial loss
arising from delays, non-performance, or unforeseen disruptions
attributable to the contractor. This article considers the
regulation and enforcement of performance bonds under Bahraini law
and outlines the legal remedies and practical considerations
relevant to their use in construction contracts.
Performance Bonds
