Payment & Performance Bonds
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Start Your ApplicationWhat Are Payment & Performance Bonds?
Payment and performance bonds are construction surety bonds required on public and many private construction projects. Together, they protect project owners, subcontractors, and suppliers from financial loss if a contractor fails to fulfill their contractual obligations.
These bonds are typically required together as a package, especially on federal, state, and municipal construction contracts under laws such as the Miller Act.
Payment Bond vs. Performance Bond
While often issued together, these two bonds protect different parties and different risks.
Protects Subcontractors & Suppliers
Guarantees that subcontractors, laborers, and material suppliers are paid for their work on the project — even if the general contractor fails to pay them directly.
Protects the Project Owner
Guarantees that the contractor will complete the project according to the terms of the contract. If the contractor defaults, the surety steps in to ensure completion.
Who Needs Payment & Performance Bonds?
You likely need these bonds if you are:
How the Process Works
Complete the Application
Submit our fully automated application with your project and business details.
Get Matched Instantly
Our system matches you with the best rate available from A-rated sureties.
Receive Your Bonds
Fast digital delivery of your payment and performance bond package, ready to file.
Why Choose Us for Your Payment & Performance Bonds
Frequently Asked Questions
Are payment and performance bonds always required together?
On most public projects, yes — federal and many state laws require both bonds together, typically each covering 100% of the contract value.
How much do these bonds cost?
Cost depends on contract value, your credit profile, and financial strength. Rates are typically a small percentage of the total bond amount.
How fast can I get bonded?
Our automated application matches you with a surety instantly, with digital bond delivery available the same day for qualifying applicants.
What happens if I default on the contract?
The surety steps in to ensure the project is completed and that subcontractors and suppliers are paid, then seeks reimbursement from the contractor.