Performance, Payment, Maintenance, Bid Bonds
What are Performance, Payment, Maintenance, Bid Bonds?
For bonds up to $400,000 please complete the application provided. Once you have completed the application please upload or email it to us. We will be in touch with you shortly and usually have an approval for you the same day.
Bid bonds are free. Performance Bonds cost 3 percent of the total job with $0.00 hidden agency fees.
Purchasing Your Performance, Payment, Maintenance, Bid Bond
1. Click the Buy Now button.
2. Fill out the easy bond form.
3. Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
4. Pay for your bond.
5. If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Pricing & Terms
Surety bond costs are a percentage of the full bond amount, which is usually determined by your personal credit. Providing industry experience, strong personal credit, and business/personal financials will help lower your bond rate. Reach out for a quote today.
Defining Contractor Bonds
Surety bonds used for construction projects are called performance bonds, contract bonds, or construction bonds. A project manager often requires contractors to secure a performance bond as a guarantee to perform under the contract. If the contractor doesn’t perform well, the project owner can look to the surety bond company to ensure the contracted work is completed. Contractor bonds include, among others, bid bonds, performance bonds, and payment bonds.
A bid bond provides a project owner with protection that a project bid proposal will be accurate, a performance bond will be posted, and the contractor will be ready to begin work if awarded the project.
A performance bond ensures that a project is completed according to the provisions of the contract (e.g., agreed upon price, within stated time period). Contractors must obtain a performance bond for all federal and state government construction contracts.
A payment bond is required so that subcontractors or suppliers are compensated for work completed under the contract.
The contractor bond process entails the following steps:
- The project manager determines whether the project specifications require you to be bonded.
- If so, you must contact your surety bond company to obtain a bid bond.
- Once a bid bond is obtained, you will submit your precise project bid proposal.
- If your bid is selected, you must contact your surety bond company to obtain a performance bond. Many surety bond companies will package performance and payment bonds together; if so, request a payment bond as well.
- Once you have completed the project under the terms of the contract, you should contact your surety bond company as the bond will likely no longer be necessary.
The contractor bond process entails the following steps:
- The project manager determines whether the project specifications require you to be bonded.
- If so, you must contact your surety bond company to obtain a bid bond.
- Once a bid bond is obtained, you will submit your precise project bid proposal.
- If your bid is selected, you must contact your surety bond company to obtain a performance bond. Many surety bond companies will package performance and payment bonds together; if so, request a payment bond as well.
- Once you have completed the project under the terms of the contract, you should contact your surety bond company as the bond will likely no longer be necessary.
The price for contractor bonds varies according to the amount of the contract, the experience of the contractor, the credit history of the contractor, and the financial strength of the business. The premium rate paid is a percentage of the contract or bond amount. The premium rate is in the range of 1 to 10 percent. Larger contracts have lower premium percentages than smaller contracts but result in a more comprehensive review of a contractor’s financial strength.
Bid bonds can usually be obtained without a fee, while some surety bond companies will charge a small administrative fee around $100 for each contract. A bid bond will usually amount to roughly 5 to 10 percent of the total contract amount.
The premium amount for performance and payment bonds is generally between 1 to 10 percent. Contractors with a solid credit history and extensive work experience pay between 1 to 3 percent, while contractors with poor credit history and less work experience pay between 4 to 10 percent.
Therefore, the contractor bond process is the best way to protect both yourself and your clients. When choosing a contractor bond company, look for a provider that sells to industry-leading companies, offers competitive premium rates, and provides a fast turnaround with excellent customer service.
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Get Started
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Frequently Asked Questions
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
For most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!