Straight answers to the questions Southeast contractors ask us most — about cost, qualifying, timing, and the different bond types.
How much does a performance bond cost?
A performance bond typically costs 0.5%-3% of the contract value per year, with lower rates on larger contracts. A $1M bond commonly runs $10,000-$30,000 depending on the contractor's financial strength.
Can I get bonded with bad credit?
Often yes. While credit is one factor underwriters weigh, the SBA Surety Bond Guarantee Program lets sureties approve contractors with thinner credit by guaranteeing 80%-90% of their potential loss. BettrBonds places SBA-backed bonds for exactly these situations.
How long does it take to get bonded?
Small bonds can be issued in a day or two with a short application. Larger contract bonds take a few business days once your financial statements and work history are assembled. Bid bonds are our fastest product.
What's the difference between a payment bond and a performance bond?
A performance bond guarantees the project gets completed per the contract; a payment bond guarantees your subcontractors and suppliers get paid. On most jobs they're issued together, and the payment bond is usually included at no extra premium.
Do I need a bond for a private project?
Sometimes. All public construction generally requires bonds, and many large private owners and lenders require them too. If your contract calls for a bond, we'll place it.
What is an obligee?
The obligee is the party who requires the bond and is protected by it - usually the project owner or government agency you're contracting with.
Frequently asked
How much does a performance bond cost?
A performance bond typically costs 0.5%-3% of the contract value per year, with lower rates on larger contracts. A $1M bond commonly runs $10,000-$30,000 depending on the contractor's financial strength.
Can I get bonded with bad credit?
Often yes. While credit is one factor underwriters weigh, the SBA Surety Bond Guarantee Program lets sureties approve contractors with thinner credit by guaranteeing 80%-90% of their potential loss. BettrBonds places SBA-backed bonds for exactly these situations.
How long does it take to get bonded?
Small bonds can be issued in a day or two with a short application. Larger contract bonds take a few business days once your financial statements and work history are assembled. Bid bonds are our fastest product.
What's the difference between a payment bond and a performance bond?
A performance bond guarantees the project gets completed per the contract; a payment bond guarantees your subcontractors and suppliers get paid. On most jobs they're issued together, and the payment bond is usually included at no extra premium.
Do I need a bond for a private project?
Sometimes. All public construction generally requires bonds, and many large private owners and lenders require them too. If your contract calls for a bond, we'll place it.
What is an obligee?
The obligee is the party who requires the bond and is protected by it - usually the project owner or government agency you're contracting with.
Ready to get bonded?
Tell us about the job — a real bond expert responds the same business day.