Surety Bonds for Payment Bonds
What is a Payment Bond?
Payment bonds are required on construction projects along with performance bonds, but they serve a different purposes. Payment bonds are a guarantee that the contractor will pay all workers, material suppliers, and contractors under the contract.Payment and performance bonds are often confused as the same kind of bond.
In the event you require both a performance and payment bond, the premium stays the same. The cost does vary widely from company-to-company based on a number of factors; such as credit history, previous claims filed and length in business. Cost guidelines are generally at a 3% rate for all bonds less than $250,000. Companies with poor credit history are subject to paying higher rates.
The surety company examines the following: applicant’s character, history of contract performances, necessary equipment, and financial strength, history of paying subcontractors and suppliers on time, bank relationships and an established line of credit.
Contact us today to get started on your performance and payment bonds application!
What is the cost of a Payment Bond?
The cost of a performance bond usually is less than 1% of the contract price; however, if the contract is under $1 million, the premium may run between 1% and 2%. Bonds may be more costly, depending upon the credit-worthiness of the contractor.
What if I have bad credit?
Excellent personal credit score and strong financial history will permit you to achieve a lower cost. New businesses may need to prove their business stability and pay an increased premium until they have a proven track record.
Regardless of your credit score, our goal is to get you approved. We have relationships with the top bonded companies and are confident in our ability to get you bonded hassle free.
Get a Bid 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!