Do I need both a bid bond and a performance bond?

For most public and government projects, yes — but at different times. A bid bond is required when you submit your bid. A performance bond is required after you're awarded the contract and before you start work. They're separate instruments. We handle both.

Bid Bonds and Performance Bonds for Contractors

Bid Bonds

Required at the Time of Bidding

A bid bond is a guarantee to the project owner that if you're awarded the contract, you'll sign it and follow through on your obligations. Most public construction projects require one. You submit it with your bid package.

Bid bonds are typically issued at no upfront charge once you have an approved bond line. Getting that line set up — and getting it placed with the right carrier at the right rate — is where we come in.

What we need from you to get started:

Company name and contact info
Project details (owner, estimated contract value, project type)
Basic financial information (we'll tell you exactly what the underwriter needs)

Payment and Performance Bonds

Required After You Win the Job

A payment and performance bond package guarantees that you'll complete the project according to the contract terms and pay your subs and suppliers. It comes into play after award — not at the bidding stage. On federal contracts and most public jobs, both are required before you can start work.

The premium is based on a percentage of the contract value. The rate depends on your financial strength, bonding history, and the size of the job. We work to find the most competitive rate your profile qualifies for — we don't just take the first offer.

What affects your rate:

Company financial strength (balance sheet, working capital)
Bonding history and current program limit
Project size and type
Surety carrier appetite at the time of application

How It Works

One Application. We Handle the Rest.

1

Submit your project details

Tell us what you're bidding and what you need. Takes a few minutes online.

2

We handle the submission

We package your financials and submit your application to the right underwriter for your situation.

3

You get the best rate we can find

We come back with options. You pick the bond. We handle the paperwork and issuance.

Questions About Bid Bonds, Payment Bonds, and Performance Bonds

For most public and government projects, yes — but at different times. A bid bond is required when you submit your bid. A payment and performance bond package is required after you're awarded the contract and before you start work. They're separate instruments. We handle all of them.

The premium is a percentage of the contract value, but the rate varies by contractor and carrier. There's no single number that applies to everyone. Factors include your company's financial strength, bonding history, and the size of the job. Because different carriers underwrite differently, the rate you get depends heavily on who you go to. We'll tell you what to expect based on your profile before we submit.

You apply, we package your financials, and we submit to carriers who work with first-time applicants. It's more involved than a renewal, but it's done every day. We'll tell you upfront what you need to provide and what to expect from underwriting.

Bid bonds for smaller projects can often be issued same-day or next-day once your application is complete. Performance bonds for larger jobs take longer because they require full financial underwriting — typically a few days to a week. Contact us with your timeline and we'll tell you exactly what's realistic.

Need a Bid Bond, Payment Bond, or Performance Bond?

Fill out a short form and we'll find you the best rate available.

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