Contractor Performance Bonds
The Bond Stop specializes in bonds for contractors. We offer a variety of contractor bonds including Contractor Performance Bonds. Performance Bonds are a type of contract bond which guarantees that a contractor will adhere to the terms and conditions of a contract according to contract specifications, terms, and conditions. Upon award of a construction contract, the winning bidder submits a performance bond. Typically performance bonds and payment bonds are issued together, because they are so closely related.
What Do Contractor Performance Bonds Protect?
Construction performance bonds prevent financial loss to the project owner in the event that a contractor does not satisfactorily complete the job for which they were contracted. Most contractors are required to provide a performance bond when awarded a large construction contract. Bid Bonds, payment bonds, and performance bonds are among the most common contract bonds on the market.
How Much Do Contractor Performance Bonds Cost?
Contractor performance bond premiums vary for a number of reasons. These reasons can include the construction job’s estimated cost, the contractor’s credit history and financial situation, and the jurisdiction in which the performance bond is issued. Contractors with good credit score usually pay a fee ranging from 0.5% to 5% of the bond amount. Some surety companies accept contractors with bad credit, charging a higher fee, typically ranging from 10% to 20% of the bond amount.
The Bond Stop writes bonds for contractors every day so we understand the market and the unique needs of contractors. We can help answer any questions you might have related to Contractor Performance Bonds. Call us now at 619.464.1154 to get your Contractor Performance Bond today.