What stage is the project in?
We handle the entire bonding lifecycle from bid to completion.
We can issue Bid Bond letters in under 2 hours for registered contractors. Overnight delivery available for raised-seal documents.
Why does the Project Owner require this?
Under the Miller Act (federal) and "Little Miller Acts" (state), public projects over a certain dollar amount require surety bonds. This protects the taxpayers' money.
- Performance Bond: Guarantees the building gets finished per the plans.
- Payment Bond: Guarantees your suppliers and subs get paid (preventing liens).
Owner Credit Strength
Surety is credit-based. Higher scores equal larger bonding capacity.
Excellent (700+)
Qualifies for standard rates (1-2%) and increased aggregate limits.
Fair (650 - 699)
Eligible for Fast-Track programs on smaller contracts.
Under 650 / Issues
We have SBA Support Programs for challenged credit.
Are business financials required?
It depends on the contract size. We have "Application Only" programs that rely solely on personal credit, allowing us to approve bonds without seeing your P&L or Balance Sheet.
What is the Contract Amount?
The size of the job determines the underwriting process.
Pro Tip: Most contractors include the cost of the bond (usually 2-3%) in their bid price. This means the Project Owner ultimately pays for the bond, not you.
Need other contractor coverages?
Bundle your insurance with your bond program.
The "Big Three" of Construction Bonds
A surety bond is a three-party agreement between You (The Principal), the Insurance Company (Surety), and the Project Owner (Obligee). It ensures the contract is fulfilled.
Definitions:
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Bid Bond: Ensures you will enter into the contract if you win the bid. Usually 5%, 10%, or a fixed amount.
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Performance Bond: Protects the owner from financial loss if you default or fail to complete the project.
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Payment Bond: Guarantees payment to your subcontractors and material suppliers, preventing liens on the property.
How much does a Performance Bond cost?
Contract bonds use a "Sliding Scale" rate based on the contract amount. However, for smaller contracts (under $500k), many carriers offer flat rates.
Preferred Rate
Of Contract Price
For contractors with strong credit and liquid assets (cash/stocks).
Flat Rate
Of Contract Price
Credit-only approval for contracts under $500k. No financial statements required.
Subprime Rate
Funds Control May Be Required
For contractors with credit issues. We utilize the SBA Bond Guarantee Program.