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Performance bonds are surety bonds that guarantee quality contract performance by a contractor according to contract specifications, terms, and conditions. In the event that the contractor does not satisfactorily complete the job for which they were contracted, a construction performance bond prevents financial loss for the project owner.
Most contractors are required to provide a performance bond upon being awarded a large construction contract. Together with payment bonds, performance bonds are among the most common contract bonds on the market.
Performance bond insurance premiums vary for a number of reasons. Factors that affect the cost of performance bonds include the construction job’s projected cost, the contractor’s financial history, and the jurisdiction in which the performance bond will be issued. Contractors who have a good credit score usually pay a fee that costs between .5% and 5% of the bond amount. Some surety companies will work with contractors with bad credit, however they will charge a considerably higher fee that could range anywhere from 10% to 20% of the bond amount.
For more than 30 years CSIA has guarded our contractor clients against unjust claims. When you purchase contractor bonds or performance bonds from CSIA you gain the peace of mind of knowing that you are bonded by a company that will stand by you and protect you when unwarranted claims are filed against your bond. In addition to performance bonds, we also offer other contract bonds, including payment bonds, completion bonds, and bid bonds.
Fill out our performance bond application today and receive a firm performance bonds quote in as little as 24 hours. For more information, or if you have any questions at all, please do not hesitate to call us toll free at 1-800-675-2000. Our hours are 7:00 AM to 7:00 PM Monday through Thursday, and 7:00 AM to 5:00 PM on Fridays.