DefinitionWhat this category covers.
Contract bonds are surety bonds tied to a job, bid, or contract. The common set includes bid, performance, payment, and sometimes maintenance bonds.
Who typically needs it
Contractors, subcontractors, and project teams asked for bid, payment, performance, or maintenance support.
What changesState, obligee, and amount details matter.
Public and private owners use different forms and thresholds. The project role and exact bond type must be identified before applying.
Pricing & issuanceTypical cost and timing.
These are common ranges, not a quote. The premium is what you pay; the bond amount is the required coverage.
Bid Bond
- Small contracts: Commonly around 1–5% of the bid amount
- Larger contracts: Rates generally scale lower as contract size increases
- Bid bonds: Often provided at no additional cost when paired with performance and payment bonds
- Full underwriting required: Credit, financials, experience, and bonding history reviewed
Timeframe: Contract underwriting required — typically 3–5 business days
Performance Bond
- Small contracts: Commonly around 1–5% of the contract value (one-time upfront premium)
- Larger contracts: Rates generally scale lower as contract size increases
- Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher
- Full underwriting required: Credit, financials, experience, and bonding history reviewed
Timeframe: Full underwriting required — typically 3–5 business days
Payment Bond
- Small contracts: Commonly around 1–5% of the contract value
- Larger contracts: Rates generally scale lower as contract size increases
- Payment bonds: Often paired with performance bonds at a combined rate
- Full underwriting required: Credit, financials, experience, and bonding history reviewed
Timeframe: Full underwriting required — typically 3–5 business days
Maintenance Bond
- Small contracts: Commonly around 1–5% of the contract value
- Larger contracts: Rates generally scale lower as contract size increases
- Maintenance period: Typically covers 1–2 years after project completion
- Underwriting: Contract underwriting typically required
Timeframe: Contract underwriting — typically 3–5 business days