Construction Bonds
We specialize in helping contractors secure all types of construction bonds, even when they might not qualify elsewhere.
Types of Construction Bonds
Bid Bonds
A bid bond guarantees that the contractor will enter into the contract and provide the required performance and payment bonds if awarded the project.
Key Points
- Typically required to be 5-20% of the bid amount
- Protects the project owner if the contractor refuses to honor their bid
- Demonstrates the contractor's financial capability and seriousness about the project
- Usually no cost to the contractor if using an established surety bond line
Performance Bonds
A performance bond protects the project owner against financial loss if the contractor fails to perform according to the terms and conditions of the contract.
Key Points
- Typically required to be 100% of the contract amount
- Ensures the project will be completed even if the original contractor defaults
- Required on all federal public works projects over $150,000
- Many state and local governments also require performance bonds
Payment Bonds
A payment bond guarantees that the contractor will pay subcontractors, laborers, and material suppliers involved in the project.
Key Points
- Typically required to be 100% of the contract amount
- Protects subcontractors and suppliers from non-payment
- Required on all federal public works projects over $150,000
- Prevents subcontractors from filing liens against the property
Maintenance Bonds
A maintenance bond protects the project owner against defects in workmanship or materials that may be discovered after the project has been completed.
Key Points
- Typically required for 1-2 years after project completion
- Ensures the contractor will return to fix any defects at no additional cost
- Common in road, sidewalk, and municipal infrastructure projects
- Acts as an extended warranty on the contractor's work
Need a Construction Bond?
Contact us today to learn how we can help you secure the bonds you need for your next project.