Performance Bonds Made Simple

What Is a Performance Bond?

 

A performance bond is a type of surety bond that guarantees a contractor will complete a project according to the terms and conditions of the contract. It helps protect the project owner if the contractor fails to fulfill its contractual obligations. 

What Is a Performance Bond?

 

A performance bond is a type of surety bond that guarantees a contractor will complete a project according to the terms and conditions of the contract. It helps protect the project owner if the contractor fails to fulfill its contractual obligations.

 

Who Needs a performance Bond?   

Performance bonds are commonly required for contractors working on government, commercial, and other construction projects. A project owner may require a performance bond before work begins to help ensure the project is completed according to the contract.

 

How Much Does a Performance Bond Cost?

The cost of a performance bond depends on the bond amount, type of project, contractor’s experience, financial strength, and credit history. Many qualified contractors may pay approximately 1%–3% of the bond amount, although rates can be higher or lower depending on the individual situation.

 

What Does a Performance Bond Protect?

A performance bond helps protect the project owner (obligee) if the contractor does not fulfill the terms of the contract. It provides financial protection according to the terms and conditions of the bond.

 

What Information May Be Needed?

The application process may require information about the contractor, project, bond amount, contract, financial history, and previous construction experience. Requirements vary depending on the size and type of project.

 

Performance Bond Services 

 

Performance.Bond makes it simple to get the bond you need. We help contractors with performance bonds for construction projects across the United States.

 

 

Ready to Get Your Performance Bond?