November 14, 2013

PUBLIC FORUM: What exactly is a performance bond?


---- — We would all like cheap, dependable electricity without harmful emissions. Some people think that Pyrolyzer LLC can deliver it, and point to Pyrolyzer’s offer of a “Performance Bond.” That sounds good, but exactly what “performance” will it “bond” (guarantee)?

A Performance Bond typically means that the construction contractors will build the plant according to the blueprints. It is not a guarantee that the facility will do what the salesman says it will. It is not a guarantee that the facility will provide cheap, clean electricity. It is not even a guarantee that the facility will work at all.

The construction industry standard for Performance Bonds is set by the American Institute of Architects, or AIA. AIA publishes many contract templates, and Performance Bond is their Document A312. According to the AIA, “The performance bond is an assurance by the contractor and the contractor’s surety that the work will be performed and completed in accordance to the terms of the construction contract.”

What we need is proof that Pyrolyzer’s electricity-generating technology will do what the salesman claims: produce clean, cheap electricity. We don’t have that.

Jim Brugh