What is a Performance Bond?
A performance bond is a three party contract between the owner of a project (the Obligee), the general contractor (the Obligor) and the surety who is guaranteeing the performance of the contractor.
How much does a Performance Bond Cost?
The cost of a performance bond can vary widely depending on the amount of coverage that is required. It is based on the total amount of the contract. Things that can affect this pricing are the perceived risk of the job, the financial position of the entity being bonded, plus other factors.
Bond prices fluctuate based on the job size. The cost of a bond is estimated through a couple of back-of-the-envelope calculations. In general, the cost is approximately three percent (3%) for jobs under $800,000 and then the percentage is lower as the contract amount increases. We work diligently to find the lowest premiums possible. Please call us today at (904) 587-4872. We’ll find you the very best rate possible for your maintenance bond or completion bond.
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These rates are for Merit clients, Standard rates are higher
Just fill out our bond application here and email it to firstname.lastname@example.org
How do I get a Performance and Payment Bond?
We make it easy to get a contract performance bond. Just click here to get our Performance Application. Fill it out and then email it and the contract documents to email@example.com or fax to 855-433-4192.
You can also call us at (904) 587-4872. We thoroughly review each and every application for commercial bonds and then submit it to the surety that we believe will provide the best P & P bond for your matter. The surety broker will perform a credit check. We have a high success rate in getting our clients performance and payment bonds at the best rates possible.
What is a Payment Bond? Is it included with the Performance Bond?
A payment bond is a bond that assures that the subcontractors and material vendors are paid. The payment provides that if the subcontractors are not paid timely and they make a valid claim, then the surety will pay them (and then collect and try from the general contractor).
What is a payment and performance bond? What is a contract bond?
Typically, a payment and performance bond are done together in the same contract by the surety. This way, the owner of the project is assured that the project can be completed pursuant to the terms of the contract and that it will not be liened by any contractor. The bond is performance security for the benefit of the owner.
Who Gets the Bond?
The general contractor is the entity that gets the bond. It is for the benefit of the owner (or in the case of government contract work, the governmental entity). It’s the general contractor that has to apply for the bond and be underwritten before the performance and payment bond is written by the surety. This is also known as bonding a business.
Just call us. We’ll work with you to get the best bond possible.