DefinitionWhat this category covers.
A performance bond is a contract surety bond that supports completion of a specific project according to the contract terms. It is underwritten against the contractor and the job, not as a simple posted license product.
Who typically needs it
Contractors and project teams handling public or private work where a performance obligation was requested.
What changesState, obligee, and amount details matter.
Project owner, contract amount, bond form, and whether payment or bid bonds are also required all change the path.
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.
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