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Performance bonds

A performance bond guarantees that you'll complete a project according to the terms, price, and schedule of your contract. If a bonded contractor defaults, the surety steps in to see the work finished — protecting the project owner. Performance bonds are typically issued at 100% of the contract value and cost 0.5%–3% of that amount in premium for well-qualified contractors, with the rate dropping on tiers as the contract gets larger.

Most public projects and many large private ones require a performance bond before you can start. It's the surety's promise to the owner that the job gets done even if something goes wrong on your end.

What it costs

Premium is a percentage of contract value, and larger contracts earn lower blended rates. Example tiered pricing: 2.5% on the first $100K, 1.5% on the next $400K, 1% on the next $2M — so a $2.5M contract blends to about 1.14% (~$28,500). A $1M bond commonly runs $10,000–$30,000 depending on your financial strength.

What underwriters look at (the 3 C's)

Capital (working capital and net worth vs. bonded exposure), Capacity (experience completing similar-size jobs), and Character (credit and reputation). We help you assemble a clean package so this goes smoothly — and if you're newer or rebuilding credit, our SBA-backed program can get you bonded anyway.

Who needs a performance bond?

Almost any contractor bidding public work — federal, state, county, municipal, school district, or DOT — needs one, and many private owners and lenders require them on larger projects too. If your contract documents mention "performance and payment bonds," that is your cue to call us.

What you will need to qualify

For most contract bonds we ask for business and personal financial statements, a work-in-progress schedule, a list of your largest completed projects, and the contract or bid you are bonding. Stronger financials and a solid track record earn lower rates and higher capacity — and if you are newer, the SBA program bridges the gap.

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.
What does a performance bond guarantee?
It guarantees the contractor will complete the project according to the terms, price, and schedule of the contract; if they default, the surety ensures the work is finished.
Ready to get bonded?
Tell us about the job — a real bond expert responds the same business day.
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