California Bid, Performance, and Payment Bonds
For over 50 year’s we’ve been providing California contractors with three primary bonds needed to work on large projects; bid bonds, performance bonds, and payment bonds. At Insurance Incorporated you’ll get multiple options from a licensed agent who specializes in these types of bonds.
Call 877-428-8778 or fill out the contact form to get help right away!
What’s the Difference Between Payment, Performance, & Bid Bonds?
Bid bonds guarantee that contractors submitting bids will enter into formal contract and provide performance/payment bond – Free and Guaranteed!
A payment bond is a bond posted by a contractor that guarantee’s its subcontractors and suppliers on the project in question will get paid. Can they pay their bills? Most large contracts require a payment bond that equals 100% of the contract in question.
Performance bond on the other hand is a bond that guarantees the full completion of a project undertaken by a contractor. It guarantees the owner that the contractor will fulfill all the contract terms, specifications, and conditions. Can they perform the work? They are often used during construction projects to protect against the strain an insolvent contractor would cause to an owner or investor.
What Do Bid, Payment, & Performance Bonds Cost?
The cost of a bond is usually determined by four main factors; the type of bond, the bond amount, the risk the applicant poses to the surety company, and the financial standing of the contractor. Our agents have special programs for contractors with excellent credit (rates under 1.5 %), we help clients with problem credit as well!
Call 877-428-8778 and speak with a California agent who can answer all of your bond questions.