A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. In the context of XI Corporation, requiring a performance bond from the contractor is most appropriate to protect against delays and unsatisfactory quality. This bond ensures that if the contractor fails to perform the contractual obligations, the bond issuer will cover the costs to complete the project or compensate for the financial losses incurred. It provides a financial assurance that the project will meet the required standards and timelines. References:
* Construction Contracting: Business and Legal Principles by Richard H. Clough and Glenn A. Sears.
* Principles of Supply Chain Management: A Balanced Approach by Joel D. Wisner, Keah-Choon Tan, and G. Keong Leong.