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Contract Performance & Payment Bonds

What is a Performance & Payment Bond?

A performance bond is a type of contract surety bond that guarantees satisfactory completion of a project under agreed upon terms by a contractor. In the event of default, the project owner may file a claim allowing for payments to a substitute contractor brought in to complete the job. Performance bonds are required on most federally funded projects. Most projects requiring performance bonds will also require a bid bond. Many performance bonds also require payment bonds and together these 2 bonds are sometimes referred to as Payment and Performance Bonds or P&P Bonds. 

Sometimes surety bonds for licenses or permits are also called "performance bonds". You can still request a quote for these from the quote request form on this page and our bond specialists will locate the right bond for you. Or to learn more about non-contract performance bonds, give us a call or use our search feature at the top of this page to find more information on your specific surety bond need. When searching, it is helpful to type in your business activity because bond names are categorized this way.

How much does a Performance & Payment Bond Cost?

Performance & Payment Bond prices vary based on the bond amount and the applicant. Most contact bonds are priced at 2-3% of the bond amount. Request a free, no-obligation quote and one of our bond specialists will look at your specific circumstances.

The party requiring the bond should have specified the bond amount. If not, the bond amount is likely the same as the total contract amount. If you are requesting a bid bond, the bond amount is often only 5-10% of the contract value.

If you'd prefer to speak with one of our bond specialists, please call us at 1-800-608-9950. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

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