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. If you win and don't execute the contract, the bond covers the owner's cost to go to the next bidder.

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)

Performance Bonds

Required After You Win the Job

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

The premium is based on a percentage of the contract value, and the rate you pay depends on your financial profile and which carrier underwrites the bond. We shop that rate. Most producers submit to one carrier and take whatever they offer. We don't. We put your file in front of multiple underwriters and find the most competitive option.

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. Multiple Carriers.

1

Submit your project details

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

2

We go to the market

We submit your file to multiple surety carriers. Not one. All of them that make sense 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 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 performance bond is required after you're awarded the contract and before you start work. They're separate instruments. We handle both.

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 shop multiple carriers to find you the lowest rate your profile qualifies for.

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 or Performance Bond?

Fill out a short form and we'll shop carriers and come back with rates.

Get Bonded →