Performance & Payment Bonds
Performance & Payment Bonds
The bonds that guarantee you finish the contract and pay your subs and suppliers — financially underwritten around your project, in 48 states.
What performance & payment bonds are
A performance bond guarantees that you will complete a contract according to its terms. A payment bond guarantees that you will pay your subcontractors and suppliers. They almost always travel together on construction contracts, especially public ones, and they protect the project owner and the people working below you — not you. If a valid claim is paid, you repay the surety.
Who needs them
Contractors taking on public projects, and private owners who require bonding. On most public work, the owner requires both bonds before you can start. The bonds tell the owner the job will be finished and everyone on it will be paid.
How to get them
These bonds are financially underwritten, so they start with a conversation rather than an instant-issue button. Contact a producer; we gather your financial statements, work history, and the contract, and the surety underwrites the bond around that specific project. We will tell you exactly what is needed and move as fast as the file allows.
What drives the cost
The premium is a percentage of the contract amount, set by your financial strength, your experience on similar work, and the size and type of the job. Because each bond is underwritten against a specific contract, we quote it from the surety after review rather than publish a rate that would not fit your project.
Browse by state
Find the performance & payment bonds your obligee requires. We write bonds in 48 states — pick yours:
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Other bonds we write
Frequently asked questions
- What is a performance bond?
- A performance bond guarantees that you will complete a contract according to its terms. If you default, the obligee — the project owner — can call on the surety to see the work finished, and you are responsible to repay the surety.
- What is a payment bond?
- A payment bond guarantees that you will pay your subcontractors and suppliers on the project. It protects the people below you on the job, and on public work it often replaces the lien rights they would otherwise have.
- How are these different from a license or bid bond?
- License and bid bonds issue instantly from your credit. Performance and payment bonds are financially underwritten and tied to a specific contract — the surety reviews your finances and the job before issuing, so they start with a conversation, not an instant-issue button.
- How do I get a performance and payment bond?
- Contact a producer. We gather your financial statements, work history, and the contract, and the surety underwrites the bond around that specific project. We will tell you what is needed and move as quickly as the file allows.
- What do these bonds cost?
- The premium is a percentage of the contract amount, set by your financial strength, experience, and the size and type of the job. Because it is underwritten per contract, we quote it from the surety after review rather than publish a rate that would not fit your job.
- What do underwriters look at?
- Your financial statements, your track record on similar work, your available working capital and credit, and the contract itself. Stronger financials and relevant experience generally mean easier approval and better terms.
