The long-awaited return of the Performance Bond in Public Works Contracts

Abstract

This paper raises the problem generated by the retention of the performance bond until the consent of the settlement in the public works contracts; its impacts on the dynamics of the construction sector, specifically in public works cases. In addition, the latest regulatory change - in force since 2019 - is analyzed, it outlines a palliative solution that proposes the return and exchange the performance bond for a lower insured amount. Finally, a perspective that allows to identify the most efficient solution.