By Archibong Jeremiah
Henceforth, contractors who want any Cross River State Government contracts will be required to provide Performance Bond Insurance (PBI).
The new policy was made known by the State Governor’s Special Adviser on Insurance, Dr. Godwin Iyala in an exclusive interview with CrossRiverWatch TV.
He said, “His Excellency has graciously approved and directed that all Government contractors henceforth should produce performance bond to ensure that the jobs are completed according to specification and within the given time line”.
The SA Insurance went to throw more light on what Performance Bond Insurance is “Performance bond is like this; I am Government I give you contract, construct this road, construct this building or do this project for me. Most at times contractors do under perform or sometimes they abandon the job but in giving you that contract I specified that this is the quality of job I want done within this time, for this amount of money”.
“So now henceforth contractors who win Government contract would go to an insurance company and bring a Performance Bond, the insurance company is giving you that to give to Government that this job you are going to carry out for them will be according to specification within this time line. Failure for you to do it, the insurance company is saying that I will indemnify government on your behalf”.
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