Performance & Payment Bonds
Performance and payment bonds are the core of contract surety. We build the underwriting once and keep your program ready, so each project bond issues cleanly.
A contract surety bond is a three-party guarantee — among the contractor, the project owner (the obligee), and the surety — that a construction contract will be fulfilled. The three core types are the bid bond that backs your proposal, the performance bond that guarantees the work is completed per the contract, and the payment bond that guarantees subcontractors and suppliers are paid.
Most public projects require performance and payment bonds together under state "Little Miller Act" statutes. We treat your bonding as a program, not a one-off transaction: a single, well-prepared underwriting file means faster turnarounds, higher single and aggregate limits, and fewer surprises when a big opportunity lands.
Smaller program? Credit-based Express up to $3M
If your credit qualifies, you may not need a full CPA financial package. Our Express program issues performance & payment bonds up to $3,000,000 single and aggregate, primarily on the owner's personal credit — one short online application, often same-day issuance. Bigger or more complex programs move to standard underwriting, and we'll tell you which path fits up front.
Estimate your performance & payment bond cost
Instant estimate on our real rates — then get the detailed breakdown and an exact quote.
Estimated first-term premium on a $500,000 contract — roughly 0.75%–3% of the contract amount. Stronger credit, financials, and bonding history land near the low end. Final rate is set at underwriting.
Get the detailed breakdown + an exact quote
We'll send a line-by-line estimate for your performance & payment bonds and confirm your exact rate. Or call 610-489-6168.
Common performance & payment bonds
Performance bonds
Guarantee completion of the contract per plans and specifications.
Payment bonds
Guarantee payment to subcontractors, laborers, and material suppliers.
Maintenance / warranty bonds
Cover defects for a defined period after completion.
More in Contract Bonds
The bonds that back construction work — bid, performance & payment, bonding letters, and credit-based Express.
Bid Bonds
Same-day bid bonds that guarantee your proposal and your ability to bond the job if you win.
Learn more →Bonding Letters
A surety's letter confirming your bonding capacity — single-job and aggregate — for prequalification and bids.
Learn more →Express Bonds (Credit-Based)
Credit-based surety bonds with minimal paperwork and fast issuance — no full financial package. Up to $3,000,000 for contractors and $1.5M–$2M for developers.
Learn more →What we need to quote
Bond form / obligee language (or link to the specs)
Latest financials (CPA-prepared for larger programs)
WIP schedule and backlog
Bank letter / line of credit terms (sometimes)
Performance & Payment Bonds FAQ
How much do performance and payment bonds cost?
Performance and payment bonds typically cost about 0.75%–3% of the contract amount, on a sliding scale: larger contracts backed by strong credit and financials land near the low end (often well under 1%), while smaller or newer accounts sit toward the high end. On a $500,000 contract that's roughly $3,750–$15,000. We quote your exact rate once we see the job and financials.
Are both bonds always required?
On public projects, usually yes — most states' Little Miller Act requires payment and performance bonds above a threshold. Private owners vary; the bond form tells us what's required.
What single and aggregate limits can I get?
That's set by your financials, WIP, and track record. A clean, well-organized submission is the single biggest lever on your bonding capacity.
Forms for performance & payment bonds
Contract Bond Request Form
For bid, performance, and payment bonds on construction and contract work.
DownloadWIP Schedule
Work-in-progress schedule template — what underwriters look for on contract programs.
DownloadPersonal Financial Statement
Owner PFS used to support contract surety credit on larger programs.
DownloadPerformance & Payment Bonds by state
Requirements and obligees vary by state. Choose yours for performance & payment bonds specifics — we write in all 50 states and D.C.
Get your performance & payment bond
Tell us what you need and we'll confirm the exact form and requirements, then get it issued cleanly. Same-day turnaround on most bid bonds.
Start Your Bond Request
One form, every bond type — or chat with us and we'll confirm requirements right away.
All bond types — contract, subdivision & commercial
Request a Bond→One form for every bond request — we'll confirm requirements and route it right away.
✓ We'll review your submission, confirm any missing details, and follow up with a quote or next steps — typically within 1 business hour during business hours.
Available Mon–Fri — or leave a message and we'll follow up same day.