Performance Bond
Contract surety bond — what it is, what it costs, and how to get one.
Get notified when we openWhat is a performance bond?
A performance bond is a contract surety bond that guarantees a contractor will complete a project according to the terms of the contract. If the contractor defaults, the surety steps in to ensure the work is finished or compensates the owner — protecting the project from costly disruption.
Who needs a performance bond?
Contractors on public works and larger private projects, typically alongside a payment bond.
How much does a performance bond cost?
Underwritten as a single-digit percentage of the contract amount, based on financials and experience.
How to get a performance bond
Complete underwriting with your business financials, request the bond for the awarded project, and submit it with your contract.
Frequently asked questions
No — it protects the project owner, and the contractor remains liable for paid claims.
The contractor pays the premium, often building it into the project bid.
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