California public works projects in excess of $25,000 require a payment bond.
The Miller Act provides that all federal construction contracts in excess of $100,000 require a performance bond and payment bond.
Smaller contract bonds up to $350,000 can be issued based solely on good credit, with no financial statements required, and can usually be
processed in just a few days.
Click here to download the one page application to apply for a bond line or obtain a bid bond.
Larger bonds require more documentation such as:
- Three years fiscal year end financial statements for the business
- Current personal financial statement
- Copy of personal federal tax returns for last 3 years
- Current work in progress schedule
- Accounts receivable / payable aging
- Copy of bank line of credit
- Resumes on all owners
- Signed indemnity agreement
- Specific job information - contract, general conditions, cost breakdown, etc.
Typical Bond Rates
The bond rate or premium is determined by a combination of factors including, but not limited to the contractor's experience and financial condition,
the bond type and bond amount, the length of the job, the surety underwriting the bond, and the obligee.
Depending upon these factors bond rates can vary widely from one contractor to another or from one project to another.
The premium for payment and performance bonds issued through the credit-only FastTrack and Quick N Easy programs is a flat 3%.
Rates and premiums are subject to change.
Do you know your bonding capacity?
The bond line prequalification process is free and can help you determine what size contracts a surety will consider bonding for you.
Call us at (619) 461-8469 or send us an email if you would like to start the process of obtaining a bond line of credit.
We have relationships surety companies who have programs available for small to medium size contractors with contract from
$2,500 to $25,000,000.
We have relationships the treasury-listed surety companies for contractors seeking bonding on federal projects in excess of $100,000.
How Do I Get Contract Bond?
- First you need apply to be approved for a bond line of credit. If you are seeking a bond line of $350,000 or less, please
complete this application. If you are seeking a larger bond line, please contact us so that we can find the right surety for you and get all of your paperwork.
- Upon approval, the surety will let you know your bonding capacity. Your bonding capacity is the maximum amount the surety will extend in contract bonds. It is important to know your bonding capacity
so that you know what size projects to bid.
- Once your bond line is approved, you must request a separate bid bond for each project that you will be bidding.
- When you are the winning bid on a project, you will need to submit the paperwork to have the payment and performance bonds issued, and pay for the bond.