Performance Bonds
What is a Performance Bond?
When a developer wants to protect the investment made in a project, the contractor that won the bid is required to provide a performance bond before work can begin. In short, this bond type guarantees that a contractor will complete a project according to contract. If the contractor fails to do so, the developer can make a claim to keep from losing money. Oftentimes performance bonds are issued in conjunction with payment bonds, and together they are among the most common construction bonds used in the market.
Your premium will vary for a number of reasons such as the project’s bid amount, your financial credentials and your past work history. If your project will be contracted for $350,000 or less, you’ll have to answer the following questions during the application process:
- How much is your bid?
- When is the bid date?
- Have you ever been bonded before?
- How long has your company been in existence?
- What is your personal credit score
To apply now, download the form which suits your needs:
If you have questions along the way, please don’t hesitate to contact us at (888) 488-BOND (2663)