Performance & Payment Bonds

Please choose from the options below to apply:

Option One: For bonds above $350,000, or for more difficult guarantees, the Standard Application is required.
Option Two: Please review the Express Bond Application page to review our express application requirements.

What are Performance & Payment Bonds?

States and local municipalities award public works projects to the contractor that submits the most cost-effective bid.  Since tax payer money is involved,   Performance and Payment bonds are required.

Performance bonds are also commonly used in commercial real estate development, where an owner or investor may require the contractor procure contract bonds in order to guarantee that the  work will be completed and all bills on the project are paid.

The Performance Bond assures the project owner that the contractor they’ve hired will execute the project in accordance with the terms and conditions outlined in the contract, at the agreed upon price, and within the time allowed.

The Payment Bond (also called a Labor & Material Payment Bond) protects certain laborers, material suppliers, and subcontractors against non-payment. Since mechanic’s liens cannot be placed against public property, the payment bond may be the only protection these claimants have if they are not paid for the goods and services they provide to the project.