Surety Bonds for Performance Bonds
What is a Performance Bond?
A performance bond is a surety bond that is issued by a bonding company or bank to guarantee satisfactory completion of a project by a contractor. This bond is applied for by the contractor, in order to protect the company, government agency or private individual hiring the contractor. It also protects the contractor from having to come up with the funds up front. If the obligations are not met, the surety company will pay the claim and then seek reimbursement from the contractor. Government or corporate entities often require performance bonds and payment bonds for any task where taxpayers’ investments need to be protected.
Performance bonds are issued usually for 10% to 20% of the contract amount unless otherwise determined by state or local law. They may have any face value, but are usually issued in an amount equal to 50% of the value of the construction contract. Anyone can claim this bond but can be subject to the condition that, who so ever is in the position to file a lien on a private project, may make a bond claim on a public project.
When would I need a Performance Bond?
When awarded a construction project, sometimes for private construction projects and usually for government projects.
Who does a Performance Bond protect?
It protects the company, government agency or private individual hiring the contractor.
Get a Performance Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!