What Are Payment & Performance
Bonds?
Payment and performance bonds are contract surety bonds required on construction projects to guarantee that the contractor will:
- Complete the project according to contract terms
- Pay subcontractors, laborers, and suppliers
- Follow all applicable laws and regulations
These bonds protect project owners, subcontractors, and suppliers from financial loss if the contractor fails to perform or pay.
They are commonly required on:
- Public works projects
- Federal contracts
- State and municipal projects
- Large private construction jobs
Payment & Performance Bond Amount & Cost
Bond amounts are typically equal to 100% of the contract value.
Your premium depends on:
- Contract size
- Contractor financials
- Credit score
- Work history and experience
- Project type
Rates are competitive, and most qualified contractors receive fast approvals.
Guarantees your project is completed according to contract terms, protecting owners and strengthening your bid.
Who Needs a Payment & Performance Bond?
You may need payment and performance bonds if you are:
- A general contractor
- A subcontractor on bonded projects
- Bidding on public works
- Awarded a federal, state, or municipal contract
- Working on large private construction projects
Any contractor performing bonded work must secure these bonds before starting the project.
Payment & Performance Bond Requirements and
Eligibility
Most project owners require:
- Bond equal to 100% of the contract value
- Contractor financial review
- Credit check
- Work history and references
- Compliance with federal or state bonding laws
Federal projects require bonds under the Miller Act. State projects follow Little Miller Act requirements.
How the Payment & Performance Bond Process Works
1
Complete the Application
Submit the quick, 60‑second application.
Required for public works and many private projects to ensure contract completion and risk protection.
2
Secure the Lowest Rate
We match you with the best rate available from A‑rated sureties.
3
Receive your bond
You receive your bonds for project filing.
Why Choose Us for Your Payment & Performance Bonds
- Lowest rates from A‑rated sureties
- Fast approvals
- Digital delivery for immediate filing
- Contract surety specialists
- 100% compliance guaranteed
Top Payment & Performance Bond Questions Answered
Our most common questions answered efficiently.
Pricing depends on contract size, credit, and financials. Rates are competitive for qualified contractors.
Small bonds can be approved same‑day. Larger contracts may require financial review.
Performance bonds guarantee project completion. Payment bonds guarantee subcontractors and suppliers are paid.
Bonds are generally non‑refundable once issued.
Yes — most public projects require both payment and performance bonds.
